Over 70 retail leaders in the UK demand urgent reform in business rates.
- Led by the British Retail Consortium, an open letter seeks fairness for the retail sector.
- Key executives from M&S, Tesco, Ikea, and others are signatories of the letter.
- The letter proposes a 20% reduction in business rates for retail properties.
- Reform aims to promote investment and balance tax contributions across industries.
In a concerted effort for fiscal reform, over 70 retail leaders in the UK, including senior executives from M&S, Tesco, Ikea, and Primark, have urged the government to revise the business rates system. Through an open letter coordinated by the British Retail Consortium (BRC), these leaders have appealed to Chancellor Rachel Reeves to implement measures that adjust the current rates, which they claim are disproportionately affecting the retail sector.
The open letter advocates for the introduction of a Retail Rates Corrector, a proposed 20% reduction in business rates on retail properties regardless of their size or location. This initiative, according to the letter, seeks to address the imbalance where the retail industry contributes approximately 7.4% or £33bn of all business taxes, with a significant portion stemming from business rates.
Signatories argue the current taxation framework places an undue burden on the retail sector, hindering its potential for growth and investment in local communities. Helen Dickinson, the BRC’s chief executive, highlighted retail’s substantial contribution to the economy, while stressing that the existing conditions are unsustainable. She stated, “Retail has been the golden goose, generating tax revenues far beyond the industry’s size, but the current situation is not sustainable.”
The retail leaders express the belief that a revision of the business rates would foster greater investment in retail, benefiting not only the sector but also the broader economy. They emphasised that such reform is vital for ensuring that tax contributions are more evenly distributed across different industries.
The open letter reflects broad consensus among retail executives that without reform, the sector may struggle to maintain its vital role within the economy. The signatories urge the government to seize the upcoming Autumn Budget as an opportunity to introduce these necessary changes.
The call for business rates reform by retail leaders underscores the need for equitable tax policies to support the sector’s growth and sustainability.
