Bosses from UK’s largest grocery retailers have written to the chancellor Jeremy Hunt, calling for a freeze in business rates to prevent the industry being charged hundreds of millions of pounds in additional tax.
The chief executives from 44 of the UK’s biggest retailers – including Tesco, Sainsbury’s Asda, Aldi, Lidl and M&S – said that more than £400m would be added to its rates bills if the “multiplier” used to determine commercial property tax was applied.
The tax, which is linked to September’s inflation figure, will be published before the statement on November 22.
According to The Times, The British Retail Consortium (BRC) helped to co-ordinate the letter, which found that seven in ten of its members were “very concerned” at the prospect of a rise.
The retailers said in a joint statement: “An increase to costs at this level could lead to upwards pressure on prices, just as shop price inflation has begun to ease.”
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Chief executive of the BRC, Helen Dickinson said: “With shop prices inflation having eased for three consecutive months, it is vital that the government does not undermine this progress.
“A £400m rates rise will also cost jobs, harm the economy and damage the vibrancy of our town and city centres.”
Chief of external affairs at the federation of small businesses Craig Beaumont added: “The issue is broader than big retailers avoiding an inflationary bill next April.
“At the same time, £2bn of relief focused on [small and medium-sized enterprises] in retail, hospitality and leisure to reduce their bills by 75% is scheduled to end.”
The news comes as the government’s net zero bottle recycling scheme looks to cost retailers at least £1.8bn a year, according to the latest calculations by the BRC.
