An appeal has been made by over 70 retail CEOs for a business rates amendment.
- The proposed “Retail Rates Corrector” seeks a 20% reduction in business rates for retail properties.
- Retail’s tax contribution is significantly higher than its GDP representation, prompting calls for change.
- The call to action aims to prevent store closures and encourage investment in the sector.
- Labour’s manifesto promises a fairer business rates system, addressing high street challenges.
In a coordinated effort led by the British Retail Consortium, 71 retail CEOs have addressed Chancellor Rachel Reeves, urging the introduction of a “Retail Rates Corrector”. This proposal seeks a 20% reduction in business rates for all retail properties. The primary goal is to redress the current imbalance where the retail sector is disproportionately burdened with 7.4% of business taxes, despite accounting for only 5% of the GDP.
A significant portion of the retail sector’s contribution, totalling £33 billion, is attributed to business rates – the highest paid by any business sector. Notable figures among the signatories include CEOs from prominent brands such as M&S, AllSaints, Asos, and more. This collective call aims to decelerate the rate of shop closures and foster new investment in employment, stores, and community development.
Helen Dickinson, Chief Executive of the British Retail Consortium, remarked that while retail has significantly contributed to tax revenues, it is essential for the government to rebalance the tax system. She stated, “The government should act to rebalance the system and ensure all industries are paying their fair share.” The Budget presents an opportunity to initiate investments that benefit retail consumers, staff, and the broader economy.
The Labour government has committed to reforming the business rates system, ensuring it generates equivalent revenue in a more equitable manner. The manifesto highlights the need to level the playing field between traditional high street retailers and online businesses, as well as addressing the issue of vacant properties. However, specific details on the new system remain unspecified.
The fashion retail sector has long advocated for a reform in business rates. According to Drapers Fashion Retail Manifesto, reducing business rates has been a critical concern for many businesses. The forthcoming increase in the business rates multiplier to 54.6p in April 2025 is predicted to impose an additional £470 million burden on the industry.
Retail leaders remain steadfast in their demand for fairer business rates, crucial for the sector’s sustainability and growth.
