Over 70 retail leaders demand urgent reform of business rates in a letter to the Chancellor.
- Leaders from high-profile retailers such as M&S, Primark, Ikea, and Tesco are among the signatories.
- The British Retail Consortium spearheaded the initiative, emphasizing ‘leveling the playing field.’
- A proposed 20% reduction in retail property business rates is suggested to ensure equity.
- The reform aims to enhance investment in retail, benefiting communities, employees, and the economy.
In a bid to address what is perceived as an inequitable tax burden, over seventy retail executives have signed an open letter to Chancellor Rachel Reeves, advocating for significant adjustments to the current business rates system. This collective action underscores the retail industry’s discontent with a structure that sees it disproportionately taxed compared to other sectors. Leaders from major retailers including M&S, Primark, Ikea, and Tesco have publicly backed this initiative, reflecting the unified stance of the retail sector on this matter.
The British Retail Consortium played a crucial role in coordinating this appeal, asserting that a ‘Retail Rates Corrector’—a 20% downward adjustment in business rates—is necessary to rectify the existing imbalance. The BRC highlighted that the retail industry contributes an outsized share of business taxes, with business rates alone comprising roughly a fifth of the £33 billion tax bill. The organization argues that this situation not only stifles potential growth within the sector but is also unsustainable in the long term.
Stuart Machin from M&S, Matthew Barnes of Tesco UK, Morrisons’ Rami Baitiéh, and Kingfisher’s Thierry Garnier are among the key figures endorsing this call for reform. The correspondence to Chancellor Reeves emphasizes the urgency of addressing this issue in the upcoming Autumn Budget, with leaders describing it as an essential step towards fulfilling existing manifesto commitments aimed at economic fairness across industries.
Helen Dickinson, the Chief Executive of the BRC, articulated the pressing need for this reform, stating, “Retail has been the golden goose, generating tax revenues far beyond its size, but the current situation is not sustainable. The government should act to rebalance the system, ensuring all industries contribute equitably while fostering retail investment in various communities.” This perspective aligns with the broader objective of the proposed reform: to catalyze increased investment in retail infrastructures, which, in turn, would benefit not only the consumers but also the workforce and the economy at large.
The retail sector’s call for business rate reforms is pivotal for fostering equitable growth and revitalizing investment.
