Major retail leaders urge reform of the current business rates system in the UK.
- Over 70 retail leaders, including those from M&S and Tesco, address Chancellor Rachel Reeves.
- The call highlights a significant tax imbalance affecting the retail industry.
- A proposed Retail Rates Corrector aims to reduce rates for retail properties by 20%.
- The proposal is part of the industry’s effort to drive investment and economic growth.
In a concerted effort to address the perceived inequities in the UK’s business tax system, more than 70 prominent retail executives, including figures from major chains such as M&S, Primark, and Tesco, have penned a letter to Chancellor Rachel Reeves. The letter emphasises the urgent need for a reformation of the business rates system, particularly in light of the upcoming Autumn Statement.
The letter, orchestrated by the British Retail Consortium, argues that the retail sector is disproportionately burdened, contributing approximately 7.4% of all business taxes, amounting to roughly £33 billion. Notably, one fifth of this substantial tax liability is attributed to business rates, a figure that industry leaders argue stifles potential investment and growth.
Retail executives, including M&S’s Stuart Machin and Tesco UK’s CEO Matthew Barnes, have called for the introduction of a ‘Retail Rates Corrector.’ This proposed measure would implement a 20% reduction in rates for retail properties across various sizes and locations. Such a correction aims to create a more balanced competitive environment and foster economic resilience within the sector.
Helen Dickinson, the chief executive of the British Retail Consortium, underscored the unsustainable nature of the current tax burden on the retail sector, stating that retail has significantly outperformed its economic size in generating tax revenues. She insists that a recalibration of the tax landscape could prompt increased investments in local communities, benefiting consumers, employees, and the broader economy.
The proposed reforms on business rates seek to alleviate the tax burden on retail, aiming to stimulate investment and promote equitable economic prosperity.
