UK retailers are set to avoid the top business rate tax band in the upcoming Autumn Budget.

Chancellor Rachel Reeves is set to remove retail businesses from the highest business rate band, following warnings from the industry that the higher charges would raise food inflation, the Financial Times reported. 

Speaking to the publication, officials said the Treasury was poised to remove large retail premises from the top property tax bracket, following meetings with business leaders on the matter.

Although officials said that a final decision had not been made, they assured that the retail industry had been “listened to”.

It comes after the Government proposed raising business rates on the biggest retail properties with values over £500,000 during last year’s budget, in order to afford making a discount for small retail and hospitality premises permanent.

The Government has not yet set the rates, with the changes due to take effect in April.

The Treasury claimed the new rates system would only impact the top 1% of properties and would help level the playing field with the likes of Amazon by capturing online retailers’ large warehouses.

However, the plan angered some of the UK’s largest retailers, who said the move would make the biggest shops unprofitable and could lead to job losses and store closures, as well as adding additional pressure following changes to employer national insurance contributions, wage rises and packaging taxes.

The British Retail Consortium (BRC) claimed that up to 400 shops could close if the higher rate goes through. 

The BRC called on Reeves to exempt large retail stores from the higher rate, while raising the additional levy for properties such as large office blocks to fund the discount for smaller properties.  

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