Britain’s biggest supermarkets face a £350m surge in property taxes next year as a result of the Government’s reforms of business rates.

The reforms, which come into effect from April 2026, will impact larger stores valued over £500,000, according to research by property agents Colliers for The Times.

The new system will lower the business rates multiplier for smaller retail, hospitality and leisure sites, while increasing the multiplier on larger properties to fund the cuts.

Colliers calculates that more than 90% of Tesco, Asda and Sainsbury’s store estate have rateable values (RV) above the £500,000 threshold and will therefore be subject to a higher multiplier.

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The firm expects the grocery sector to be facing more than £350m in additional costs annually, with suppliers such as food manufacturers, bakeries and dairies also set to be hit with steeper bills.

A Treasury spokesman told The Times: “We are a pro-business government that is creating a fairer business rates system to protect the high street, support investment and level the playing field.

“Our reform to the business rates system will introduce new, permanently lower business rates in 2026 while removing the £110,000 cap, benefiting over 280,000 retail, hospitality and leisure business properties.

“This will be sustainably funded by a new, higher rate on the 1% of most valuable business properties.”