Business rates reform must recognise logistics is critical part of the UK economy, says Logistics UK

"While we acknowledge the desire for a fairer, more sustainable system, it is crucial that the unique challenges facing the logistics, warehousing and distribution sector are fully considered, alongside the potential consequences of the proposed reforms on the sector.  

"Logistics is the backbone of the UK economy, enabling the movement of goods across supply chains that support businesses, consumers, and public services. The logistics sector is a critical part of the UK economy and a significant contributor of business rates. Reform of the system must recognise this.  

"Additional costs placed on the logistics sector are felt across the economy and disincentivise investment in efficient, sustainable supply chains. Any attempts to distinguish between online and offline retail are outdated and do not recognise how businesses operate in reality. Reforms to rates reliefs should be tapered and provide incentives for investment and modernisation.  

"Business taxes should, whenever feasible, be broad in scope and neutral across sectors to prevent unfair advantages or costs for particular industries or companies. This approach helps maintain fair competition and avoids adding unnecessary complexity to an already intricate tax system.  

"In today’s economy, the line between online and offline sales is increasingly blurred, making any attempt to structure a business rates system around this distinction impractical and disconnected from real-world operations.  

"Businesses of all sizes, from major traditional retailers to small enterprises, rely on substantial online activities and the supply chains that support them. This was highlighted in an August 2024 report by the Federation of Small Businesses, which found that 63% of high street small businesses sell at least some of their products through websites, mobile apps, or online marketplaces."