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Labor has promised to overhaul the business rates system to revitalize the High Street if elected at the UK general election.
The party did not specify what will replace the current business rates system, but said reforms would level the playing field for high street businesses against online rivals.
The party first presented a plan in November setting out how it plans to support Britain’s small businesses.
Labor leader Sir Keir Starmer said “hard-working small businesses have been held back”.
Business rates are a tax on non-residential properties such as pubs, restaurants, warehouses, factories, shops and offices.
The amount companies pay is based on the annual rent that can be charged for the property, also known as the rateable value.
Central government has a significant degree of control over business rates in England, but these are collected by local councils.
On Saturday, Shadow Chancellor Rachel Reeves told the BBC that Labor wants to “reform the business rates system in a way that reduces costs for small businesses and high streets, and ensures some large multinationals and technology companies pay their fair share”.
The party would also create ‘banking hubs’ to ensure small businesses and customers have easy access to cash when on the High Street, Ms Reeves said.
As part of a package of measures, Labor says it will stamp out late bill payments through new legislation to force big companies to reveal their payment practices, and revive the high street by cracking down on anti-social behaviour.
Labor is also planning new laws to allow smaller companies to qualify for government contracts.
It is trying to claim the status of the party of business, traditionally associated with the Conservatives.
Ms Reeves was joined on the campaign trail by retail guru Mary Portas, who switched to Labor after advising David Cameron’s coalition government on how to revive the High Streets in 2010.
Ms Portas said high streets were vital for “communities and their wellbeing”.
She described small businesses as “the backbone of our economy”, which were “terribly left behind” during the Covid-19 pandemic as shopping habits moved online.
Ms Portas also praised plans to tackle payment delays, saying “cash flow is essential” for independent businesses.
Tina McKenzie, policy chair at the FSB, said it was “good to see Labor facing late payments” and that eyes would now “turn to the launch of the manifesto to see if the party has a pro- small business approach”.
Speaking ahead of a small business themed event held by Labor on Saturday, Sir Keir said entrepreneurs had faced economic instability as a result of the ‘Conservative chaos’.
However, Business Secretary Kevin Hollinrake said that “Rishi Sunak and the Conservatives have a reputation for taking bold action to support small businesses”.
He pointed to previous government measures such as freezing business rates for hospitality venues during the pandemic, when trade was hit by lockdowns.
Drew Hendry, the SNP’s economic spokesman, suggested Labour’s plans were “empty promises” for Scottish small business owners.
He added that the SNP had already set up the Scottish National Investment Bank, but called for the removal of “red tape, increased costs and visa blocks for workers as a result of Brexit”.
Meanwhile, a Liberal Democrats spokesperson said the Conservative party had “completely failed business owners time and time again” and would also look at a “review” of the business rates system.