How a new online tax could boost British high streets

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Skip to contentSwipe for next articleIndependent Bulletin homepageDownload our appAllNewsSportCultureLifestyleWant to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today.Join todayAlready a member? Log inRhiannon JamesThursday 08 October 2026 06:58 BSTVoters divided ahead of crucial by-election test for BurnhamThe Institute for Public Policy Research has urged Chancellor John Healey to introduce a 2 per cent tax on online purchases and a 1 per cent tax on click-and-collect services.The think tank aims to shift the tax burden from traditional high street stores to online retailers ahead of the financial statement on 28 October.The proposed measures could raise an estimated £1.5 billion to fund reductions in business rates for physical retail, hospitality, and leisure outlets.To protect smaller retailers, the IPPR suggested exempting a business's initial £500,000 in annual remote sales from the new tax.The proposals could leave small high street businesses £1,400 better off annually while fully compensating local authorities for lost business rate revenue.In fullEnforce online shopping tax to support UK high streets, Healey toldMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in