Over 100 supermarket stores risk closure due to the Government’s proposals to increase business rates, reports the Financial Times.

Sainsbury’s is expected to see 50 of its 600 supermarket stores become unprofitable due to the rising cost of property charges, said the publication.

Additionally, tens of Tesco stores and 30 Morrisons stores could also be impacted.

Around 90% of Asda’s supermarket estate is expected to be affected by the increased business rates. However,  Aldi and Lidl will remain unimpacted due to the smaller store sizes. Property experts estimated that less than 10% of Lidl’s stores will be affected.

Major retailers, including M&S, have been criticising the Government’s plans to increase business rates for larger properties, warning that it would lead to store closures and hiring slowdowns.

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“Given larger retailers are often anchor tenants on the high street, taxing them to support smaller stores is a false economy,” M&S has said. “If larger shops close, smaller shops suffer.”

“The proposed reforms could therefore accelerate the decline of the high street by encouraging retailers to close larger high street stores.”

However, the Government has reiterated that the new charges are targeted towards online retailers’ warehouses and distribution centres.

A Treasury spokesperson told the Financial 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.”

“Unlike the current relief for these properties, there will be no cash cap on the new lower tax rates, supporting some of Britain’s most loved high street chains to continue to create jobs and grow the economy.”