Retail leaders have written to chancellor Jeremy Hunt calling for a freeze in business rates in the upcoming autumn statement to prevent the industr being charged millions of pounds in additional tax.
The chief executives from 44 of the UK’s biggest retailers – including Aldi, Boots, Ikea, M&S, Sainsbury’s and Tesco – said that more than £400m would be added to its rates bills if the “multiplier” used to determine commercial property tax was applied.
“An increase to costs at this level could lead to upwards pressure on prices, just as shop price inflation has begun to ease,” they said in a letter seen by The Times.
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The tax, which is linked to September’s inflation figure, will be published before the statement on November 22.
The British Retail Consortium (BRC) said that seven in 10 of its members were “very concerned” at the prospect of a rise, warning about the impact on investment, jobs and prices.
Chief executive Helen Dickinson said: “With shop prices inflation having eased for three consecutive months, it is vital that the government does not undermine this progress.
“A £400m rates rise will also cost jobs, harm the economy and damage the vibrancy of our town and city centres.”
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