Business Rates Changes Put 400 UK Large Shops at Risk of Closure

The British Retail Consortium (BRC) has warned that up to 400 of Britain's largest retail stores could close due to the government's proposed higher business rates tax band targeting premises with a rateable value over £500,000. These large-format stores, which employ about one-third of the retail sector's workforce, face rising costs from employment, taxes, and rates, and the new surtax could force them to raise prices, cut jobs, or shut down, potentially costing up to 100,000 jobs and reducing local councils' business rates income by over £100 million annually. The government plans to fund a permanent reduction in business rates for smaller retail, hospitality, and leisure premises by increasing rates on larger properties, aiming to make the system fairer. However, the BRC argues that this approach risks damaging anchor tenants that attract footfall to high streets and shopping centers, thereby impacting surrounding smaller businesses. Retail leaders including John Lewis, Lidl, and B&Q have urged the Chancellor to exempt retail stores from the surcharge, suggesting instead that the tax increase should be targeted at other large properties like office blocks to maintain revenue neutrality without harming jobs. The BRC emphasizes the importance of balancing support for smaller shops while avoiding a detrimental impact on large retailers that are vital to the retail ecosystem.