In a concerted effort, the UK’s leading supermarkets are advocating for a reduction in business rates.
- The British Retail Consortium has addressed an open letter to the Labour government.
- The letter, endorsed by top supermarket chains, argues for a 20% reduction in business rates.
- The sector reportedly contributes 7.4% of total business taxes in the UK.
- Without reform, there is a significant risk of shop closures across the nation.
The leading supermarkets in the United Kingdom have unified in a significant initiative, urging the government to address business rates that they consider disproportionately high. The core of their argument rests on a letter orchestrated by the British Retail Consortium (BRC), which has been formally presented to the Labour government.
The open letter from the BRC has amassed signatures from the chief executives of some of the UK’s foremost supermarket chains, including Tesco, Sainsbury’s, Morrisons, Aldi, Marks and Spencer, Iceland, Asda, the Co-op, and Lidl. They are collectively calling for a retail rate reduction by 20% across all retail properties regardless of location and size.
This collective appeal underscores the retail sector’s significant contribution to the national economy, accounting for 7.4% of the total business taxes in the country, which they highlight as substantially higher relative to their economic footprint.
The appeal is grounded in concerns articulated earlier by Sainsbury’s CEO, Simon Roberts, and Usdaw’s general secretary, Paddy Lillis, who warned that the present business rate levy could endanger the continuity of over 17,000 retail outlets across the UK if not reformed.
The letter emphasises that restructuring business rates not only ensures equitable tax distribution but also stimulates essential investment across the UK, aligning with government objectives for sustained economic growth.
The unified call by major supermarkets for business rate reduction underscores the urgent need for government intervention to sustain the retail sector.
