In data: 17,000 UK shops at risk as retail leaders urge business rates cut

In an open letter coordinated by the British Retail Consortium (BRC), the CEOs, covering groceries, fashion, furniture, electronics and more argue that high business rates are contributing to the decline of high streets, with the UK losing over 1,000 shops annually.

Signatories of the letter included fashion brand leaders from H&M, Footasylum, Marks & Spencer (M&S), Matalan, Monsoon, Primark, New Look, and Schuh.

Without intervention, research suggests a further 17,000 shops could close over the next decade. The proposed Retail Rates Corrector aims not only to prevent further closures but also to stimulate investment in jobs, retail locations, and communities.

The Retail Rates Corrector proposes a 20% reduction in business rates for retail properties, aimed at addressing the disparity in tax contributions.

Retail and hospitality sectors currently pay the highest proportion of their pre-tax profits in taxes compared to other business sectors, with one-fifth of retail’s £33bn ($43bn) tax bill coming from business rates—1.5 times greater than its share of the overall economy, which stands at 5% of GDP.

Source: BRC

This disproportionate burden is said to be hindering investment in both people and places, affecting the 3m retail employees and the 2.7m workers employed across the supply chain.

This is why 71 CEOs, covering groceries, fashion, furniture, electronics and more, have come together to write to the Chancellor. The letter states: “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 BRC, highlighted the urgency of the reform: “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.”

The BRC has spent the last few weeks fighting for the government to introduce a Retail Business Rates Corrector to remove the disproportionate impact of business rates on retail.

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“In data: 17,000 UK shops at risk as retail leaders urge business rates cut” was originally created and published by Just Style, a GlobalData owned brand.

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