Leading UK supermarkets have called for a reduction in business rates to support the retail sector.
- The British Retail Consortium (BRC) wrote an open letter to the government advocating a 20% reduction in business rates for retail properties.
- The letter highlights that the retail sector pays a disproportionately high share of business taxes relative to its economic size.
- The BRC suggests that adjusting business rates could drive nationwide investment, crucial for economic growth.
- Sainsbury’s CEO and Usdaw’s general secretary warned that 17,000 UK shops are at risk without reform.
Leading UK supermarkets have aligned with retail leaders in urging the government to implement a reduction in business rates, a move deemed vital for the prosperity of the retail sector. This call for change is spearheaded by the British Retail Consortium (BRC), which has addressed the Labour government in an open letter co-signed by chief executives from major supermarkets including Tesco, Sainsbury’s, Morrisons, Aldi, Marks & Spencer, Iceland, Asda, the Co-op, and Lidl.
The BRC’s letter advocates for a substantial 20% reduction in business rates for all retail properties. It underlines the fact that the retail sector is currently contributing 7.4% of all business taxes, which is significantly higher than its proportional share of the overall economy. The letter proposes that such a rate correction is necessary to level the playing field across various industries.
Furthermore, the organisation suggests that reducing these rates would not only make tax distribution more equitable but would also stimulate investment across all regions of the country, an element identified as essential for long-term economic growth.
This decisive action by the BRC follows earlier warnings from prominent figures such as Sainsbury’s CEO Simon Roberts and Usdaw general secretary Paddy Lillis. Both have cautioned that without significant government reform on business rate levies, over 17,000 retail outlets throughout the UK could face closure, presenting a grim prospect for the sector.
In summary, the alignment of major supermarkets and retail leaders in calling for reduced business rates signals a pressing need for reform to secure the future of the retail industry.
