Business rates rise would put hundreds of big shops at risk, say UK retailers

"Up to 400 large shops are at risk of closure with as many as 100,000 jobs at risk if the government goes ahead with plans to hit stores with higher business rates, retailers have warned. Some of the UK's largest retail premises, including supermarkets and department stores, would face higher property tax charges under new rules being considered by the government before November's budget."

"The bosses of big retailers including John Lewis, Lidl and B&Q met the chancellor, Rachel Reeves, last week to ask her to exclude retail from the surcharge. The new rules are targeted at all business premises with a rateable value a figure linked to rents of more than 500,000. The surcharge could apply to 4,000 large retail outlets, according to the British Retail Consortium, which represents most large retail groups."

Higher business rates targeted at premises with rateable values above 500,000 could impose extra costs on large supermarkets, department stores, warehouses, offices and other big sites. The surcharge is intended to fund discounts for smaller business properties such as independent retailers, cafes and pubs. The British Retail Consortium estimates around 4,000 outlets could face the surcharge and models suggest about 400 large shops might close. Retailers may respond by raising prices or cutting jobs. Senior executives from major chains met the chancellor seeking exclusion of retail from the surcharge. Large shops act as anchors that support surrounding businesses.

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