UK's retail leaders push for business rate reform in Autum Budget

The signatories highlighted that British households have faced one of the sharpest inflationary periods in living memory. While retailers said they have absorbed as much of the burden as possible, government policies have added around £7 billion (~$9.45 billion) in extra costs this year alone, the letter said as per a press release by British Retail Consortium (BRC).

These stem from higher employer national insurance contributions, increased employment costs, and the new packaging tax.

The letter noted that the Bank of England recently warned in its monetary policy report that food price inflation is set to rise further, driven not only by global commodity costs but also by higher labour expenses and Extended Producer Responsibility (EPR) regulations.

The BRC expects food inflation to hit 6 per cent later this year, pushing household bills higher just as winter energy costs begin to bite.

Retailers argued that the escalating costs are already curbing investment and leading to job losses. Over the past year, around 1,00,000 retail jobs have disappeared, according to the letter. It warned that further policy-driven costs risk undermining Labour’s manifesto pledges to deliver good jobs and raise living standards.

While backing the government’s plan to reduce business rates for retail, hospitality and leisure, executives stressed that reforms must result in a significant reduction in the industry’s tax burden. The letter insisted that no store should pay more as a consequence and calls for all shops to be excluded from the new higher multiplier. According to retailers, such changes could be achieved at no cost to the Exchequer.

“As the chief executives of many of Britain’s leading brands, we are determined to help deliver your growth ambitions. However, for this to be possible, the conditions for stable prices, continued investment and sustainable employment must be at the heart of this year’s budget. We see it as a key moment for the government to publicly buy into retail and the vital role the industry can play in helping deliver a stronger and more resilient economy for all. We look forward to working with you on this important mission,” the letter added.

ALCHEMPro News Desk (SG)