|
There is a "serious danger" of small entertainment retailers in the UK being forced out of business by online and offshore companies, according to a leading industry body.
Kim Bayley, director general of the Entertainment Retailers Association, said that the main issue was one of cost.
She explained that the VAT savings of a typical offshore business start-up gives its products a 17.5 per cent discount in comparison to a retailer located in the UK.
Ms Bayley commented: "For example, if you locate yourself on the Channel Islands, youre able to sell products which cost under £18 - which is most CDs - to a consumer VAT free."
The financial disadvantages, she explained, made it "very difficult for [UK] retailers to compete on a level playing field".
Many in the entertainment industry think that losing specialist, high street entertainment outlets would be disastrous for the UK music industry.
Ms Bayley concluded: "There is a serious danger that we could lose a very important part of our high street - and that will have a knock on effect on new music talent emerging.
"The music industry and the world at large knows that a lot of these artists start their sales in small, specialist record shops."
See copyright notice
| Other
Top Business News Stories |
|
Business
News 
