The Retail Jobs Alliance, which includes many big retailers, has urged Conservative and prime ministerial contenders Rishi Sunak and Liz Truss to address the “unsustainable burden” of business rates
The organisation, whose members include retailers such as B&Q owner Kingfisher and top grocer Tesco, has written to both candidates to warn that “without urgent action many more shops, restaurants and pubs will struggle to keep their doors open”.
High inflation means retailers are faced with the prospect of a 10% rise in rates in April next year.
The retailers argued that failure to reform the rates regime could affect levelling-up ambitions. They wrote: “While much of the discussion in this campaign has focused on corporation tax, it is business rates that are killing our high streets – a pre-profit tax which inhibits investment and disproportionately impacts those communities most in need of levelling up.”
They maintained that “piecemeal reform” was insufficient and said: “A permanent reduction in business rates for all retailers, regardless of their size, would make a big difference to retailers’ ability to invest more in shops and stores as well as to create jobs.”
An alliance spokesperson added: “Our high streets and town centres are being hit hard by business rates, and yet neither candidate to be prime minister has come up with a serious plan to help.
“Liz Truss and Rishi Sunak need to show they understand what will do most to stimulate investment, support job creation and help levelling up. That means it’s time to cut the shops tax.”
The letter from the alliance, whose backers also include the Co-op, Greggs, Morrisons, Sainsbury’s and Waterstones, along with retail trade union Usdaw, followed a similar plea to the leadership candidates from trade body the BRC last week.
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