The managing director of a Cumbrian retailer is demanding immediate action on business rates following a parliamentary inquiry.

In December Martin Foster, managing director of Lakeland Leather and member of the British Independent Retailers Association, appeared before a cross-party panel of MPs to give evidence on behalf of independent retailers.

As a result of the ongoing inquiry a longer-term solution to the problem of business rates is being developed by the Treasury select committee.

However, at a meeting of the BIRA, Martin called for action to be taken immediately.

He said: “I was pleased to see that going forward there will be change. But action taken needs to be immediate in order to save the crisis on our high streets.”

Independent retailers have proposed a temporary business rates allowance of £12,000 to support smaller businesses.

“Trying to reform business rates takes time, but the proposal of a rating allowance would take the pressure off the rising costs retailers face by the government,” said Martin.

One suggested longer-term solution to business rates is a corporation tax graded by profits.

Marting said: “As a business, if you’re no longer paying business rates, then your profits would be higher. If that means we have to pay a higher rate of corporation tax, at least that is a fair system. The entrepreneurial spirit within retail will come forward again.

“I believe there’s a better understanding of the issue. However, if action isn’t taken quickly, we’ll continue to see a downward spiral. It would make a huge difference to see the pressure of rising costs of rates being taken away."