Bosses of Tesco, Sainsbury’s, Asda, Morrisons, Aldi and Lidl are among 70 retail leaders to have written to Chancellor Rachel Reeves calling for business rates reform.
The BRC-backed letter calls on the government to follow through on its commitment to reforming the business rates system by cutting 20% off the bill for retail.
The so-called retail rates corrector aims to “stem the tide” of over 1,000 shops closing a year, according to the BRC, which warned a further 17,000 could close over the next decade.
It said the measure would redress the imbalance that sees the retail industry pay 7.4% of all business taxes, amounting to £33bn, a share 1.5 times greater than its share of the overall economy.
The letter calls on Reeves to introduce the retail rates corrector in the autumn budget on 30 October.
Labour’s manifesto included a commitment to replace business rates with a new system which would raise the same revenue while levelling the playing field “between the high street and online giants”.
The retail sector welcomed the pledge, but has been awaiting detail since the party was elected to government in July.
“We believe now is the time to level the playing field between industries with a retail adjustment to rates as this is the best way to achieve this manifesto commitment,” says the letter.
“We are writing to ask you to use the autumn budget to apply a retail rates corrector, a 20% reduction to rates bills for retail properties of all sizes in all locations.”
Among signatories are Tesco UK CEO Matthew Barnes, Sainsbury’s CEO Simon Roberts, Asda CFO Michael Gleeson, Aldi UK & Ireland CEO Giles Hurley, Lidl GB CEO Ryan McDonnell, Co-op CEO Shirine Khoury-Haq, M&S CEO Stuart Machin and Iceland CEO Tarsem Dhaliwal.
BRC CEO Helen Dickinson said: “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. This in turn would drive increased retail investment in people, places and communities.
“The budget is the perfect opportunity to lay the groundwork for local investment that delivers for retail’s customers, delivers for its employees, and delivers for the economy.”
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