Tesco boss Sir Terry Leahy today said that the business rates revaluation set for 2010 should be postponed to allow retailers to steer their way through the downturn.

Speaking at a British Council of Shopping Centres meeting in Liverpool, Leahy said the Government was brave in cutting interest rates by 1.5 per cent last week but that more needed to be done to help businesses.

“There are three points in which the Government can help retailers: business rates, regulation and energy costs,” said Leahy.

He said there should be a cut in the uniform business rates multiplier in 2009/2010, saying “business rates must be reversed as they don’t reflect the changing nature of property today”.

He pointed out that as it stands, the revaluation of business rates will reflect when property costs were at their peak in April 2008, and that does not reflect today’s lower values.

Leahy also said the Government needs to be careful not to place extra regulatory burdens on business in this difficult climate.

“The competition test and the ombudsman will hamper a highly competitive industry which the Competition Commission described themselves as already offering value, choice, innovation and competition,” he said.

Leahy’s final demand was that the Government should act to secure a reduction in wholesale gas and electricity prices. On this point, he said: “The Government should pursue this with urgency.”

Leahy added: “These are three ways which the Government can help retailers. And retailers drive so much of the economy.”