More than 70 retail bosses including execs from M&S, Primark, Poundland, Ikea and Tesco have written to Chancellor Rachel Reeves calling for reform of the current business rates system ahead of the Autumn Statement at the end of this month.
The open letter, coordinated by the British Retail Consortium, urges the new Chancellor to “level the playing field between industries with a retail adjustment to rates”.
It asks Reeves to introduce a Retail Rates Corrector – a 20% downward adjustment in business rates paid on retail properties – to redress the imbalance that sees the industry pay 7.4%, roughly £33bn, of all business taxes.
Of the £33bn tax bill, the BRC said one fifth is made up of business rates.
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The letter, whose signatories include M&S’ Stuart Machin, Tesco UK CEO Matthew Barnes, Morrisons boss Rami Baitiéh and Kingfisher CEO Thierry Garnier, reads: “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.
“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”.
BRC chief executive 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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