Key figures in retail urge UK government for business rate overhaul.
- More than 70 retail executives have united for this cause.
- They propose introducing a ‘Retail Rates Corrector’.
- The proposed reform aims to reduce business taxes by 20%.
- Such change is expected to boost retail sector investment.
In a significant move, over 70 leading figures from the retail sector, including executives from major companies, have collectively addressed a letter to Chancellor Rachel Reeves. This coalition seeks to instigate reform in the current business rates system before the forthcoming Autumn Statement.
The British Retail Consortium has orchestrated this appeal, calling for a ‘Retail Rates Corrector’—a proposed 20% reduction in business rates for retail properties—to adjust what they perceive as an imbalance in tax contribution across industries. Currently, the retail sector contributes approximately £33 billion in business taxes, accounting for 7.4% of the total, with business rates comprising a fifth of this amount.
The letter, endorsed by prominent leaders such as Stuart Machin, Matthew Barnes, and Thierry Garnier, asserts the urgency of creating a more equitable system. The signatories argue that this adjustment would fulfil a key manifesto commitment by ‘levelling the playing field between industries’.
Helen Dickinson, the Chief Executive of the BRC, stated, ‘Retail has been the golden goose, generating tax revenues far beyond the industry’s size, but the current situation is not sustainable. The government should act to rebalance the system and ensure all industries are paying their fair share.’ She further emphasised that such reforms could drive increased investment in retail, benefiting communities and the economy at large.
The proposed reform is pivotal for enhancing fairness and investment in the retail industry.
