Shirine Khoury-Haq, CEO of Co-op, is calling for a reform of the UK’s business rates system, describing it as ‘fundamentally broken.’
Her comments come ahead of the Budget, underscoring the need for urgent action to support struggling high streets across the country.
Business rates have emerged as a crippling factor for UK high streets, notably impacting retail and hospitality sectors reliant on physical locations. Khoury-Haq highlighted that Co-op’s business rates have surged by 20% in two years.
.She underscored the necessity for reform, pointing out the direct correlation between high business rates and declining high streets.
There has been some relief through temporary measures post-pandemic; however, these are set to expire on 31 March. Businesses fear a £900m impact once relief measures end, as noted by a recent open letter from over 170 firms.
Significant players like JD Wetherspoon and Caffe Nero are among those voicing these concerns, indicating widespread opposition to the existing structure.
Khoury-Haq stressed the importance of addressing both physical and online entities in tax policies.
She noted, ‘Protection of brick and mortar stores and ensuring online businesses pay their fair share is crucial.’
The Co-op, being the most frequented retail entity in the UK with over 800 million transactions annually, emphasises affordability as a key to remaining on the high street.
Khoury-Haq showed support for Labour’s proposed workers’ rights, urging comprehensive consultations with businesses before implementation.
She conveyed optimism, seeing alignment with practices Co-op has engaged in for years, aiming for employee satisfaction and retention.
The CEO urged the government to engage with businesses extensively to realise effective reforms.
She advocated for advance notice and collaboration to ease any transition, stressing the benefits of mutual understanding and planning.
This approach, she insists, will aid businesses in adapting to new regulations efficiently.
Reforming business rates and employing strategic consultations with stakeholders are seen as pivotal steps to revitalise UK high streets.
Khoury-Haq’s advocacy reflects a broader call for equitable and thoughtful policy to bolster diverse business landscapes.
The Co-op CEO’s call to action on business rates reform highlights a crucial juncture for high streets.
Achieving a fair, balanced system could ensure the sustainability and growth of these vital commercial areas.
