Over 70 retail CEOs advocate for a reduction in business rates.
- Retail industry leaders urge the government to lower rates to match the sector’s economic contribution.
- The proposed “Retail Rates Corrector” aims to reduce business rate bills by 20%.
- Chief executives from major brands support the initiative to prevent shop closures and boost investment.
- The Labour government’s manifesto acknowledges a need for a fairer rates system.
In a significant move, over 70 retail Chief Executive Officers have united to call for a reduction in business rates, which significantly impact the retail industry. These leaders have signed an open letter to Rachel Reeves, Chancellor of the Exchequer, advocating for a “Retail Rates Corrector” that would cut rates by 20%. The current rates structure forces the retail industry to contribute 7.4% of all business taxes while accounting for only 5% of the GDP, prompting concerns about fairness and sustainability.
The letter has been coordinated by the British Retail Consortium, highlighting the pressing need for reform. Notable signatories include Stuart Machin of M&S, Peter Wood of AllSaints, José Antonio Calamonte from Asos, Jo Whitfield of Matalan, and executives from Monsoon, New Look, and other major retailers.
Helen Dickinson, CEO of the British Retail Consortium, emphasises that retail has been a “golden goose” for the economy, contributing more than its proportionate share of tax revenues. However, she warns that the current situation is unsustainable, and action is necessary to rebalance the burden, which could, in turn, spur investment in jobs and communities.
The proposal not only aims at alleviating the financial burden on retailers but also seeks to mitigate the trend of store closures, encouraging new investments across communities. The Labour government’s manifesto aligns with these concerns, proposing a fairer system, although details remain forthcoming.
Long-standing calls for reform underscore the urgency of these measures. As retailers face a potential increase in the business rates multiplier, expected to cost the industry approximately £470 million from April 2025, the corrector could provide a crucial relief.
The call for a “Retail Rates Corrector” highlights a critical need for fairer business taxation to sustain and grow the retail sector.
