Nine major retail executives have written an open letter urging the Chancellor to exclude supermarket retailers from the business rates tax increase.

In a letter published by the British Retail Consortium (BRC), retail bosses expressed concern around the future of retail if the business rates are hiked.

The retailers state that the previous increase to NIC and packaging tax has added significant costs to the supply chain and supermarkets, which increased inflation over the past year.

Helen Dickinson, chief executive of the BRC, said: “Supermarkets are doing everything possible to keep food prices affordable, but it’s an uphill battle, with over £7bn in additional costs in 2025 alone.

“From higher National Insurance contributions to new packaging taxes, the financial strain on the industry is immense.”

She added: “This letter calls on the Chancellor to exempt shops from the new business rates surtax. levied on all large commercial premises. This would not only help to tackle food inflation but would support jobs and investment right across the country.”

The executives warn against the proposal of higher business rates for larger buildings, which would slow down investments and put stores at risk of closure.

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The statement added: “It is for these reasons that we would ask you to ensure that the proposed changes to business rates result in a significant reduction to the industry’s rate burden. While we are pleased the Government is committed to supporting smaller retail properties, it is equally important that large shops are excluded from the proposed business rates surtax for premises with a rateable value of £500,000 or above.

The list of retail executives that signed the letter is:

• Giles Hurley, chief executive officer, Aldi UK and Ireland
• Michael Gleeson, chief financial officer, Asda
• Tarsem Dhaliwal, chief executive officer, Iceland
• Ryan McDonnell, chief executive officer, Lidl GB
• Alex Freudmann, food managing director, Marks & Spencer
• Rami Baitieh, chief executive officer, Morrisons
• Simon Roberts, chief executive officer, Sainsbury’s
• Ken Murphy, Group chief executive officer, Tesco
• Tina Mitchell, managing director, Waitrose