Co-op has supported Labour’s plans to raise business rates for supermarkets and department stores, which the grocersaid will “support local shops”.

Speaking to Retail Week, a Co-op spokesman said that the supermarket backed chancellor Rachel Reeves’ plans to overhaul business rates at the next autumn Budget.

The plans involve bringing in a surcharge on large retail premises to raise £1.7bn to lower rates for smaller shops.

The spokesperson explained: “At Co-op, we welcome the government’s plans to reform the business rates system and support the local shops that are the heartbeat of communities across the country.

“As the UK’s leading convenience retailer, with a presence in every postal area, we expect the reforms to benefit around 92% of our own store estate.”

They continued: “More broadly, the government has estimated that 98% of shops across England will benefit. That is a vital step forward. As we look ahead to the autumn Budget, it is essential that these reforms are delivered in full and on time.

“Any delay or change risks further harm to high streets at a time when many businesses are already under pressure. Supporting a healthier high street must be a long-term priority, not only for retail but for jobs, local services and the future of our communities.”

Support from Co-op follows a warning from M&S that it could be forced to close several of its stores under the plans.

The rival grocer said: “Given larger retailers are often anchor tenants on the high street, taxing them to support smaller stores is a false economy. If larger shops close, smaller shops suffer.

“The proposed reforms could therefore accelerate the decline of the high street by encouraging retailers to close larger high street stores.”

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