Plans for Business Rate Hike Risk 400 UK Large Stores, 100,000 Jobs

Industry leaders, spearheaded by the British Retail Consortium (BRC), warn that around 400 of Britain's largest retail stores, including supermarkets and department stores, face closure if the Government implements a proposed higher business rates tax band on properties valued over £500,000. This tax increase, intended to subsidize lower rates for smaller businesses, could cost up to 100,000 jobs and reduce local councils' business rates income by over £100 million annually. Retail currently accounts for 5% of the economy but pays more than 20% of all business rates, with large stores bearing about a third of that burden. The BRC argues that given retail's slim profit margins and existing pressures from rising employment costs and taxes, the surtax would force stores to raise prices, cut jobs, or close. The consortium urges the Government, particularly Chancellor Rachel Reeves, to reconsider and shift some tax responsibilities toward other commercial properties like office blocks, which would have less impact on jobs and consumer prices. Failure to act risks hollowing out high streets and retail parks, removing essential ‘anchor’ stores that support local economies and communities.