Leading retail executives have petitioned the government to revise business rates, citing current imbalances.
- Over 70 retail leaders, including M&S and Tesco, advocate for a Retail Rates Corrector in their letter to Chancellor Reeves.
- The retail sector contributes significantly to business taxes, paying more than its proportionate share.
- The British Retail Consortium highlights the unsustainable burden on retail businesses.
- The proposed reform could stimulate investment in local communities and the economy.
The retail sector is seeking immediate restructuring of the business rates system, as voiced by over 70 leaders including those from major companies like M&S, Primark, and Tesco. They collectively addressed Chancellor Rachel Reeves through an open letter compiled by the British Retail Consortium, urging reform ahead of the Autumn Statement.
This collective plea highlights a specific recommendation: the introduction of a Retail Rates Corrector, suggesting a 20% downward adjustment in rates charged on retail properties. This adjustment aims to create a fairer tax balance across different industries, addressing the current situation where the retail industry shoulders 7.4% of the UK’s total business taxes, amounting to approximately £33 billion. Business rates constitute a fifth of this tax burden.
Notable figures like M&S’ Stuart Machin and Tesco UK CEO Matthew Barnes insist that now is the optimal time to rectify these inequities by prioritising a reform in the upcoming budget. The proposed measure aims to fulfil a manifesto commitment of levelling the playing field.
Helen Dickinson, CEO of the British Retail Consortium, labelled retail as a ‘golden goose’ for tax revenues but stressed the unsustainable nature of the current system. She argued for governmental intervention to redistribute the tax responsibilities more evenly, which would, in turn, enhance retail investments in staff, infrastructure, and local economies.
According to Dickinson, adopting this corrective approach in the budget could catalyse growth and strengthen community investments, thereby benefiting both consumers and the broader economic landscape.
The letter calls for urgent government action to realign business rates, fostering parity across industries and encouraging economic growth.
