71 leading retail CEOs call for Government to reform business rates system

In an open letter to Chancellor Rachel Reeves MP, ahead of the Autumn Budget on 30 October 2024, 71 leading retail CEOs have called on the Government to introduce a 'Retail Rates Corrector' as part of its commitment to reforming the business rates system.

Stating "now is the time to level the playing field between industries", the letter was coordinated by the British Retail Consortium (BRC).

The Retail Rates Corrector – a 20% downward adjustment in business rates paid on retail properties - aims to redress the imbalance that sees the retail industry pay 7.4% of all business taxes (£33 billion), a share 1.5 times greater than its share of the overall economy (5% GDP).

That tax burden holds back investment in people and places – "directly affecting the three million people employed by the industry, and the 2.7 million additional people employed within the supply chain".

It also matters for the tens of millions of shoppers all over the country, and the communities they live in, as the UK has been losing shops at a rate of over 1,000 a year. Additionally, research suggests that without action a further 17,000 shops could close over the next decade.

The Retail Rates Corrector aims to not only stem the tide of shop closures, but to "unlock new investment in jobs, shops and communities".

The clear message is that high streets and town centres are paying far more than their fair share of tax. According to the BRC, retail and hospitality pay the highest proportions of their pre-tax profits in taxes compared to any of the other main business sectors. Of retail’s £33 billion total tax bill, one fifth is made up of business rates – the highest of all business sectors.

That’s why the 71 retail CEOs have come together to write to the Chancellor.

The letter reads:

"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."

Helen Dickinson, Chief Executive of the British Retail Consortium, 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."