Rachel Reeves is drawing up plans to increase taxes paid by online giants such as Amazon to protect the high street.
According to reports in Bloomberg, the chancellor is looking at ways to change the existing system of business rates so that e-commerce companies pay more than those with bricks and mortar premises.
Any potential adjustment would align with Labour’s pledge to level the playing field between traditional retail outlets and online businesses.
The proposed tax changes could help reduce the financial burden on physical stores, particularly in sectors such as hospitality and leisure, where firms were facing a looming increase in business rates when a Covid-era relief measure expires in April.
While Reeves will likely stop short of an online sales tax, she is reportedly considering adjustments to how business rates are calculated, potentially basing them on factors such as a company’s revenue or the type of property occupied, which could offer relief to struggling firms.
Reeves is set to announce her maiden budget on 30 October.
Related: Britain’s last distant-water trawler is stuck in Hull for the most Brexit reason ever