Tesco, Morrisons, Sainsbury’s and the Co-op are amongst the coalition of retailers calling on the Conservative party leader candidates to slash business rates.
The Retail Jobs Alliance, which consists of these grocers alongside other high street retailers including Greggs, Kingfisher and Waterstones have called on both Rishi Sunak and Liz Truss to pledge to cut business rates, which have been “killing our high streets”.
In an open letter, the group feared that many more shops, restaurants and pubs will struggle to keep their doors open, if no action is taken.
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The Alliance also branded the so called ‘shop-tax’ as a “pre-profit tax which inhibits investment and disproportionately impacts those communities most in need of levelling up.”
It added that the “piecemeal” reform would not be enough, suggesting that property taxes in the UK were “four times higher than Germany and 50% above the G7 average.”
The move comes as UK businesses are currently facing a 10% rise in rates next spring as inflation is set to rise even higher in the coming months, as the UK prepares for a recession.
A spokesperson for the group said: “Our high streets and town centres are being hit hard by business rates, and yet neither candidate to be Prime Minister has come up with a serious plan to help.”
“Liz Truss and Rishi Sunak need to show they understand what will do most to stimulate investment, support job creation and help levelling up. That means it’s time to cut the Shops Tax.”
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