Several leading retailers warn the Treasury about job and store risks due to planned business rate hikes.
- Tesco, Asda, Primark, and M&S initiate a campaign against business rate increases for larger stores.
- The Retail Jobs Alliance, including big names like Morrisons and Sainsbury’s, revives to oppose the changes.
- Concerns grow over the impact of rate hikes on economically disadvantaged areas reliant on retail employment.
- More than 70 retailers previously expressed concerns about inevitable job cuts due to increased costs.
Major retailers, including Tesco, Asda, Primark, and M&S, are raising alarms about proposed business rate increases by the Treasury. These increases pose significant risks to both jobs and the infrastructure of retail stores. As part of a new campaign, these retailers aim to communicate the potential consequences of these changes to the Chancellor of the Treasury, Rachel Reeves.
The initiative is backed by a revitalized Retail Jobs Alliance (RJA), originally established in 2022. It includes key players like Morrisons, Sainsbury’s, and B&Q, who collectively express concern that the tax hikes will deter investment in areas already struggling economically. This coalition intends to engage with Treasury officials in upcoming weeks to discuss how these fiscal changes might lead to reduced investments in these crucial regions.
Insiders reveal that the RJA is working closely with the British Retail Consortium to form a united front against the rate increases. The plan is to present detailed analysis showing that shops with rateable values above the new £500,000 threshold are predominantly located in employment-reliant areas. Consequently, these regions could face significant economic downturns if retailers are forced to retreat due to higher costs.
The backdrop to this initiative is the significant backlash following the Labour Party’s fiscal budget announcement in October, which detailed extensive new costs for companies. A collective of over 70 retailers has already highlighted that job cuts would be unavoidable if the proposed fiscal policies are implemented.
Launching in January, the coalition expects to gather additional support from other retailers who share these concerns. By coming together, these businesses hope to amplify their message and effect meaningful dialogue with the government to reconsider these financial policies.
Retailers’ collective efforts aim to protect jobs and investments threatened by proposed tax changes.
