The six major UK supermarkets have collectively urged a reduction in business rates.
- An open letter was penned by the British Retail Consortium (BRC) to the UK Labour government.
- The letter was signed by chief executives from leading UK supermarkets such as Tesco and Sainsbury’s.
- The letter calls for a 20% reduction in business rates for retail properties.
- This initiative seeks to address the disproportionate tax contribution of the retail sector.
The six largest supermarket chains in the UK have joined forces to advocate for a reduction in business rates. This collective call was formalised through an open letter written by the British Retail Consortium (BRC) and addressed to the Labour government. The letter urges the government to apply a ‘Retail Rates Corrector’, which proposes a 20% reduction in business rates for retail properties of all sizes and locations.
This appeal, endorsed by chief executives from major supermarket brands including Tesco, Sainsbury’s, Morrisons, Aldi, Marks and Spencer, Iceland, Asda, Morrisons, the Co-op, and Lidl, highlights the significant tax burden faced by the retail sector. Notably, these businesses contribute 7.4% of all business taxes, a figure that is 1.5 times their representation in the overall economy.
The BRC argues that recalibrating business rates is essential to create a level playing field between industries. Such a move would also stimulate economic investment across the UK, a factor deemed crucial for sustained long-term growth. The consortium emphasises that sharing the tax burden more equitably could drive more significant investment in various parts of the country.
The BRC’s letter is underscored by concerns previously raised by Sainsbury’s CEO Simon Roberts and Usdaw general secretary Paddy Lillis. Earlier in the year, they cautioned that without a reform of the business rate levy, more than 17,000 retail outlets could face closure.
Through a concerted effort by the UK’s leading supermarkets and retail leaders, there is a strong push for the government to reassess and reduce the business rates, aiming to foster a fairer economic environment and stimulate growth.
