Iain McKie

Abolish business rates says UKIP Parliamentary candidate

This in from Iain McKie, UKIP’s IW Parliamentary Candidate. Ed


Seeking to ‘end this madness whereby business are taxed before they have had a chance to make money. After all, if the shop is successful, corporation tax will be paid, more people will be employed, and VAT will be taken in’.

Asked why he was so concerned about these taxes McKie replied:

“Look at our High Streets on the Island, they are lined with empty shells and charity shops. This is no way to grow an economy.”

When challenged about the lost revenue to the Government McKie replied,

“The Government should be focussing on stemming the wastage of public funds like HS2, not blocking entrepreneurs’ chances.”

McKie will be collecting signatures for his petition to take to Downing Street later this year,

“I will be touring around the Island for the next few months to try and get support for this vital campaign.”

Image: © Used with permission of Jason Swain Photography

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Robert Jones
27, September 2013 2:52 pm

The reason so many shops are empty on the high street hasn’t a lot to do with business rates: a lot more to do with the global bankers’ recession, and the rents charged to business by freeholders who are simultaneously free-loaders.

HappyHun
Reply to  Robert Jones
30, September 2013 8:01 am

Robert that is a pretty silly reply, of course Business rates affect trade, they are so high and for what ? What does a shop keeper get for such a huge amount, the right to trade, that’s it, Councillors get whacking great big pensions though ! I own a substantial retail outlet in Shanklin and I used my pension pot what I worked all my life for… Read more »

Robert Jones
Reply to  HappyHun
30, September 2013 11:25 am

What I said was “rents charged to businesses by freeholders who are simultaneously free-loaders”; WHO ARE – i.e. those who are both one thing and the other, not every single landlord/freeholder. I’m not in any position to speak of every freeholder; eg, I don’t know what rent you charge for your property in Shanklin; perhaps you’re someone who does his/her best to keep the rent to a… Read more »

Robert Jones
Reply to  Robert Jones
30, September 2013 12:03 pm

I’ve explored both of Ian’s links now; the Taxpayers’ Alliance one is largely tendentious and not specifically about business rates anyway, but the Federation of Small Business’s one is more interesting. It calls for a restructuring of the business rate, saying that 13% of small businesses pay as much in rates as they do in rent (plainly not the case here). That’s very different from saying the… Read more »

Happyhun
Reply to  Robert Jones
30, September 2013 2:22 pm

Robert a lengthy reply but not quite accurate, quite often the rates can be greater than the rents charged there are three main commercial agents on the Island, call them and they will confirm what I am saying,so where you state ‘What I do know’ you clearly do not know and when you speak about ‘evidence’ perhaps you could be a bit more specific about this evidence… Read more »

mat
27, September 2013 4:26 pm

Business rates do not really affect employment in small shops, having said that there is a case for abolishing business rates at the lower end. UKIP fail to address the issue of taxing lower paid working class people. Most working class people should be taken out of tax altogether so that the general claim on the social product is not aimed at workers but big business. There… Read more »

Cynic
Reply to  mat
28, September 2013 9:29 am

@mat “It proves that UKIP are just another Conservative Party in favour of big business and not ordinary people.” Ian McKie apparently denies this, which might come as a bit of a shock to some of the party’s main sponsors, such as: Paul Sykes, the Yorkshire businessman and property developer.(£1.46m) Stuart Wheeler, Eton-educated businessman and treasurer of the party (£514,957 since 2001.) Julian Blackwell, owner of Blackwell’s,… Read more »

iain mckie
27, September 2013 4:53 pm

Hi Mat, the Federation of Small Business appears to disagree with you have a look at this:

http://www.startupdonut.co.uk/news/startup/rates-are-killing-the-high-street-says-fsb

or http://www.betterretailing.com/ban-business-rates-for-indies-say-industry-leaders/

Also, UKIP propose a tax free allowance of £13,000 which I believe to be higher than the Coalition currently provide.

phil jordan
27, September 2013 6:52 pm

What are your ideas for bridging the shortfall in revenue income resulting from for the “abolition” of Business Rates during the next three years (for example) as we try to make £24M of budgetary savings (over three years)…?

Do you know the annual amount of money you are talking about..?

kevin Barclay-Jay
Reply to  phil jordan
27, September 2013 8:34 pm

of course not..its just electionaring by a party in decline

Don Smith
Reply to  kevin Barclay-Jay
28, September 2013 12:27 am

Don’t they all do it?

UKIP will rock the boat, both for Labour and the Tories, Lib/Dems are none runners, a party in the wilderness.

mat
Reply to  Don Smith
29, September 2013 1:02 pm

One or more of the Independents has their eye on Turner’s job.

ALLAN
27, September 2013 7:06 pm

funny in a place like Monaco people pay no or next to no tax it is all paid by the businesses and casinos ,

iain mckie
27, September 2013 8:09 pm

Hi Phil, I appreciate your concern about covering the shortfall. But here is a good start: http://www.taxpayersalliance.com/home/2013/06/bumper-book-government-waste-exposes-120-billion-wasteful-spending-4500-household-uk.html
My issue with Business Rates is that it is a disincentive for firms setting up, taking people off benefits and generating economic growth. Iain

Cynic
Reply to  iain mckie
28, September 2013 5:29 pm

As an electoral candidate, it might be wise for Ian McKie to familiarise himself with the UKIP Manifesto 2010, especially its accompanying aspiration “Small Business 2010”.

BRIAN
27, September 2013 10:41 pm

Whenever the government gives grants or reduces charges, to stimulate a particular activity, there is always someone on the make to take advantage and reduce the impact. Enterprise Zones No rates to pay so the Landlords put the rent up, thus taking a cut from the trader Loft Insulation The installation company just add the grant to the price so the householder gains nothing Same thing with… Read more »

iain mckie
28, September 2013 7:33 am

Hi Kevin, yes this is electioneering. I do not dispute that. I have an enormous task ahead of myself to unseat Turner. However, this is not a UKIP policy. This is one of my own making. And if between now and May 2015 if this ridiculous system of taxing potential is done away with, then I will be happy. According to Andrew Perloff (http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10270820/Abolishing-tax-on-empty-shops-could-create-150000-jobs-says-property-investor-Andrew-Perloff.html) getting rid of… Read more »

woodworker
Reply to  iain mckie
28, September 2013 6:05 pm

I never thought I would say this, but the best service you could do for the Island is give up now. I would rather have Turner than anyone associated with the UKIP, especially if your main campaign will centre around abolishing business rates without any clear way of replacing the revenue generated by them. The upshot of your campaign is either further cuts, or tax rises for… Read more »

iain mckie
28, September 2013 8:03 am

Mat, one thing that I forgot to add yesterday in reply to your assertion that UKIP are pro-big business, I would like to add this: our small shop in Newport for the Council elections in May (the old Julian Graves health food shop on the High Street) cost us over £1100 pcm in Business Rates. That’s a person’s salary gone to waste. That’s why I have started… Read more »

Cynic
Reply to  iain mckie
28, September 2013 8:43 am

Given the result of the election (2 out of 29 candidates elected) , would it be cheaper for UKIP to rent a phone-box or have a pop-up store in the market? :-))

iain mckie
29, September 2013 6:10 pm

Hi Woodworker – if you would like to chat about the budgetary implications for the abolition of Business Rates please drop me a line iain@iainmckie.co.uk and we can meet up. I would very much like to hear your ideas about how to improve the economy. Thanks, Iain

woodworker
Reply to  iain mckie
29, September 2013 8:20 pm

All I would like to know is how you will go about replacing the revenue lost by abolishing business rates. Stopping one railway line wont cut it and you know it, so rather than discussing my ideas about how to improve the economy in private, how about we hear more about your ideas publicly, and rather than just spouting a policy that might get you elected, tell… Read more »

peaceful_life
29, September 2013 7:07 pm

Hi there, Ian.

Just out of interest, did you go to the NEF seminar on localising business which was hosted at the riverside on Friday?…if so what was your take?
There are a couple of fundamental drivers to take into account fo any business.

Thanks.

iain mckie
30, September 2013 7:28 am

Hi Peaceful Life, I was booked in to going, but i was asked into the IW Radio at 10 am for an interview and so missed it. I was pleased to see Andrew Turner organising it, and had wanted to hear what they had to say. My one reservation was that when I looked at NEF’s website and the CVs of its staff, none of them had… Read more »

peaceful_life
Reply to  iain mckie
30, September 2013 11:12 am

Thanks for the reply, Ian. It’s a pity you couldn’t make it as it started at 11 am. It is true that NEF staff have a predominance in the world of finance, but I guess their remit is to evaluate and advise SME’s from a more macro perspective of the fundamental drivers that govern those SME’s, which at least allows them to look at adaptation. Tony Greenham,… Read more »

iain mckie
30, September 2013 9:38 am

Hi Woodworker, according research produced by Panther Securities in August, abolishing Business Rates could generate 150,000 new jobs in the UK. This will ease the benefits burden greatly, and will generate PAYE, VAT, and Corporation tax receipts to cover the shortfall. Hope that helps, Iain

Cynic
Reply to  iain mckie
30, September 2013 12:10 pm

It might be worth reviewing the real estate and investment banking backgrounds of most of the directors of Panther Securities.

Heaven forfend that it would affect their recommendations!

woodworker
Reply to  iain mckie
30, September 2013 7:51 pm

Could? you want my vote based on a Could? It is clear that the money will be paid by business if they do employ more people – so why would they? Why not just accept the abolition of business rates and pocket the money saved? I admire your idealism, but we live in the real world where those 150,000 jobs are a pipedream. Whats scary is that… Read more »

iain mckie
30, September 2013 1:48 pm

Hi Peaceful Life. Many thanks for the comments. I am not so naive to think that Business Rates are the sole cause of the High Street’s decline. I categorically believe, though, that any tax applied at the start of the cycle is being applied at precisely the wrong place. Taxes should only be enforced once money has been made, not before. Thanks, Iain

peaceful_life
30, September 2013 2:14 pm

Hi Ian. Sure, in fact the rates are absolutely nothing to do with the decline, they are merely a remnant of an overall contraction, this is because real taxes are always applied at the beginning of the cycle at the point of extraction, the taxman being entropy, of course our abstract human notions of economic workings can be adjusted and manipulated to suite this (as much to… Read more »

mat
30, September 2013 9:40 pm

Tories are “dying out” and need a partnership with far-right Ukip to prop up an all-time low in party membership, according to a senior Conservative think tank. The Bow Group says the desperate Tories need to “return to the grassroots” by forging an electoral pact with Ukip. A BBC poll suggests that a quarter of Tory councillors agree with the proposals, while a number of high-profile Conservatives… Read more »

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