After the government announced their planned changes to business rates, warehouse managers were left reeling at the 27% tax rise. With rising fuel costs, supply chain issues, and the aftermath of Brexit already causing major issues for warehouses, the tax bill increases are going to see companies taking huge financial hits, says manual handling experts, Midland Pallet Trucks.
The measures were announced as part of Jeremy Hunt’s autumn statement, with the government aiming to tackle the “bricks v clicks” tax imbalance. Big warehouse operators will see their rates rise by 27%, with retailers facing a tax bill hike of 20%. Amazon alone could see its UK tax bill increase by £29 million next year.
Phil Chesworth, managing director of Midland Pallet Trucks, says, The warehouse industry is a huge sector in the UK, and it contributes billions to our economy, provides many job opportunities across the country, and is an integral part of supply chains. The business rate changes unfairly penalise the sector, and we urge the government to reconsider”.
He adds, “Supermarkets such as Tesco and Asda, who support food delivery, are also likely to be affected by this increase. With the cost of living already high, the inevitable price rises for products will be devastating for the end-consumer”.
After the budget was announced, many businesses in the warehousing industry across the country voiced similar concerns. These businesses feel the government isn’t considering the already low margins earned by warehouse companies.
Midland Pallet Trucks, which is located in the Midlands, provides high-quality manual handling equipment such as pallet trucks, manual stacker trucks and weighing scale trucks to warehouses across the country, allowing them to gain crucial insight into the logistics network and how integral it is to our daily lives.
To find out more about the wide range of material handling and lift equipment available from Midland Pallet Trucks, visit: https://www.midlandpallettrucks.com/