Retail CEOs write to chancellor calling on her to ‘level the playing field’ on business rates

In an open letter coordinated by the British Retail Consortium, retail bosses called on the government to introduce a retail rates corrector “as part of their commitment to reforming the business rates system”.

A retail rates corrector would be a 20% downward adjustment in business rates paid on retail properties. Retail leaders say it would redress the imbalance that sees the retail industry pay 7.4% of all business taxes (£33bn) – a share 1.5 times greater than its share of the overall economy, which is 5% of GDP.

The leaders said the current business rates tax burden “holds back investment in people and places – directly affecting the 3 million people employed by the industry and the 2.7 million additional people employed within the supply chain”.

The UK has been losing shops at a rate of over 1,000 a year, the letter said, with research suggesting that without action, a further “17,000 shops could close over the next decade”.

The letter also said UK high streets and town centres are “paying far more than their fair share of tax”, with retail and hospitality paying the highest proportions of their pre-tax profits in taxes “compared to any of the other main business sectors”.

“We believe now is the time to level the playing field between industries with a retail adjustment to rates as this is the best way to achieve this manifesto commitment. We are writing to ask you to use the autumn Budget to apply a retail rates corrector, a 20% reduction to rates bills for retail properties of all sizes in all locations,” the open letter from 71 retailers concluded.

BRC chief executive Helen Dickinson said: “Retail has been the golden goose, generating tax revenues far beyond the industry’s size, but the current situation is not sustainable. The government should act to rebalance the system and ensure all industries are paying their fair share. This in turn would drive increased retail investment in people, places and communities. The Budget is the perfect opportunity to lay the groundwork for local investment that delivers for retail’s customers, delivers for its employees, and delivers for the economy.”