Mayor Andy Street calls for rates overhaul to boost high streets

Andy Street has called for business rates to be slashed for new and expanding firms in a bid to save Britain's flagging high streets.

Andy Street addressing members of the Treasury Select Committee

The West Midlands Mayor and former John Lewis boss said retailers in town and city centres were being forced out of business by an outdated rates system that he wants to see overhauled.

Mr Street made the plea to MPs in an appearance at the Treasury Select Committee.

He also called for online retailers such as Amazon to pay more tax as part of a plan to transform high streets into "free trade zones".

Describing the current business rates as "past its sell by date", the Conservative Mayor said: “Our town centres and in particular our high streets are the heart of where we live, and they are having a tough time.

"We need to think originally to come up with practical solutions to help them thrive again."

He said turning town centres into "free trade zones" would give enhanced powers to local authorities and more support for shops and local businesses.

“This idea would create the special conditions that our town centres need, including reducing business rates, special planning rules, and new town centre funding from a tax on online businesses," he said.

“Here in the West Midlands, we are already making progress with our Town Centres Programme, but there is much more still to do so that we can all be proud of our high streets once more.”

As part of his plans Mr Street wants 100 per cent business rate relief for public sector organisations such as the NHS and further education colleges who bring their public services into units on the high street.

He says local councils should be given the power to reduce business rates and grant special planning conditions, allowing homes to be built in town centres quickly, and to fast track public realm improvements and new green spaces.

This would be funded by ramping up taxes for online retailers, he said.

The West Midlands Combined Authority has prioritised improving the region's struggling high streets, last year launching a £20 million town centres regeneration programme to revamp areas including Bilston, Dudley, Walsall and West Bromwich.

A town centre taskforce has also been set up.