In a letter co-ordinated by the British Retail Consortium (BRC), more than 70 leading retail CEOs have written to the UK chancellor, Rachel Reeves, asking for a significant change to business rates paid by retailers.
A total of 71 retail CEOs – from business sectors such as groceries, fashion, furniture and electronics – have urged the chancellor to consider such a measure. Their letter 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 business rates for retail properties of all sizes in all locations”
Retail bosses say that this kind of measure would address a current imbalance where the retail industry pays 7.4% of all business taxes (£33bn), which is 1.5 times greater than its market share of the overall economy (5% GDP).
According to the CEOs, this tax burden is holding back investment in people and businesses, which is also having a knock-on effect to the tens of millions of shoppers all over the UK.
The BRC says its data shows that the UK has been losing shops at a rate of more than 1,000 a year, and that research suggests without action, a further 17,000 shops could close over the next decade.
The Consortium says that implementing a strategy such as the retail rates corrector could help staunch the current concerning rate of shop closures, while also freeing up investment in jobs, shops and communities.
“Retail has been the golden goose, generating tax revenues far beyond the industry’s size, but the current situation is not sustainable,” commented Helen Dickinson, chief executive of the British Retail Consortium.
She continued: “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.”
The Government is scheduled to announce the details of its Autumn Budget on October 30. While there is currently no word on what the budget will specifically contain, Chancellor Rachel Reeves told the BBC it will contain “difficult decisions” on tax, spending and benefits across the UK.