The founder of Dune has poured cold water on Rachel Reeves’ plan to cut costs for the High Street.
Daniel Rubin, who set up the shoe retailer in 1992, said despite promises to boost growth, Labour policy was having the ‘opposite effect’ for struggling businesses.
In her Budget, the Chancellor promised to pay for a cut in bills for smaller firms by raising taxes on larger properties to ‘level the playing field between the High Street and online giants’. But many accuse her of botching the reform, arguing it had made the system more complex, with some small businesses facing higher bills and some larger firms such as supermarkets offered relief.
‘This was not a good Budget for business or retail and it will not drive growth, which the country urgently needs,’ Rubin said. ‘On one hand the Government is saying growth, but everything it’s doing is having the opposite effect.’
Best foot forward: Business groups also accused the Chancellor of making a ‘complete mockery’ of promises to relieve the mounting tax burden on struggling retailers
The Dune boss also said that the late timing of the Budget, near the key Christmas trading period, as well as constant leaks of potential policies later reversed had damaged confidence among firms. He said: ‘A lot of purchasing and investment decisions were unnecessarily delayed. The process was badly handled.’
Rubin said the changes to business rates were mere ‘tinkering’ and that the system needed a complete overhaul.
‘Retailers pay 75 per cent of business rates and occupy 25 per cent of the properties, so they’re penalised to a huge extent. No other country has a system like this. I go to France a lot and they’ve managed to keep their high streets and independent businesses.
‘Here occupation costs are so high it makes it very difficult for traders to make any money.’
Rubin also said the constant uncertainty around what ministers would do next was driving away investment as confidence waned in Labour’s handling of the economy.
‘Businesses aren’t investing because of uncertainty and increasing costs. There’s no incentive to open on a High Street full of charity shops and nail bars. Why would you?’
Business groups last week also accused the Chancellor of making a ‘complete mockery’ of promises to relieve the mounting tax burden on struggling retailers.
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