Kankiwala stated that John Lewis faces increased employment costs and higher business rates following the Budget, which could hinder the retailer's turnaround efforts. In a comment to the Financial Times, he emphasized, "That seems to be sort of [a] two-handed grab, and that's unhelpful." He believes that the dual impact of rising National Insurance rates and delayed business rates reform will complicate recovery for retailers, creating significant financial strain.
Kankiwala argued that if the government could delay the National Insurance changes and expedite a fundamental overhaul of the business rates system, it would be significantly beneficial for retailers. He stated, "If they could delay the National Insurance [changes], but also if they could fundamentally bring forward a radical reshaping of business rates, I think it will make a massive difference—not just for small and medium enterprises, but I think for retail generally. It's very important."
Retailers, including John Lewis, expressed frustration with the surprise nature of the Budget changes. Simon Roberts, CEO of Sainsbury's, remarked that their support for government employment reforms was based on a previously established commitment from ministers to swiftly tackle business rates. He stated, "We need business rates reform in the next fiscal year to enable proper investment in communities and to support the retail sector’s recovery from the pandemic."
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