Responding to the reports that HMV is on the brink of collapsing into administration, Leader of the Liberal Democrats Vince Cable said:
"Although there is nothing to stop the march of technological progress, the issues HMV and other high street stores are facing have been compounded by the out of date business rates system.
"While separate action is needed to ensure online retailers pay their fair share of corporation tax, Liberal Democrat proposals to replace the business rates system would offer a lifeline to struggling high streets.
"As we witness yet another company about to go into administration, the need for reform is clearly urgent.”
The Liberal Democrats published a report earlier this year calling for the abolition of business rates and its replacement with a tax on land values.