Over 70 prominent British retail CEOs, including key figures from the furniture industry, have signed an open letter to Chancellor Rachel Reeves MP, calling for urgent reform to the business rates system. The letter, coordinated by the British Retail Consortium (BRC), advocates for the introduction of a Retail Rates Corrector—a 20% reduction in business rates on retail properties—to address the disproportionate tax burden faced by the sector.
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Currently, the retail industry contributes 7.4% of all UK business taxes, a figure significantly higher than its 5% share of the national economy. The BRC argues that this imbalance is hindering investment in retail businesses, which employ 3 million people directly and another 2.7 million within supply chains.
The CEOs warn that without changes, the UK will continue to lose shops at an alarming rate. The country has already seen more than 1,000 shop closures per year, and projections suggest that 17,000 more could shut down over the next decade unless reforms are made.
The letter highlights the detrimental impact on high streets and town centres, which are currently shouldering an excessive share of the tax burden compared to other sectors. Retail, alongside hospitality, faces the highest proportion of pre-tax profit spent on taxes. Of the £33 billion total tax bill for retail, one-fifth is from business rates, making it the most heavily taxed sector.
Signatories of the letter include high-profile retail leaders such as Sue Kemp (AIS), James Barker (Barker and Stonehouse), Peter Jelkeby (IKEA UK and Ireland), Stuart Machin (M&S), Simon Roberts (Sainsbury's), and Matthew Barnes (Tesco).
Read the full letter here: www.brc.org.uk