By Alex Nelson

Copyright scotsman

Primark’s parent company warns large UK stores could be under ‘pressure’ from tax changesProposed business rates overhaul may increase costs for big stores while helping smaller shopsExperts say up to 400 large-format shops could face higher bills, risking closuresLarge stores play a key role in attracting shoppers and supporting high streetsRising costs for retailers could reduce choices for consumers if stores struggle to stay open

Shoppers could face a shrinking high street, according to the boss of the parent company of one of the most recognisable high-street fashion brands.

George Weston, billionaire chief of Associated British Foods (ABF), which owns Primark has warned that proposed tax changes could put large stores under “pressure,” potentially affecting their ability to stay open.

Weston has told the Government that planned changes to business rates are “mistaken” and risk hitting some of the UK’s biggest retail stores hardest. He has urged the Labour Government not to increase taxes on businesses in the November Budget.

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The warning comes amid a backdrop of rising costs for retailers. In recent years, businesses have already faced increased national insurance contributions, higher minimum wages, and a new packaging tax.

Now, the Government plans to overhaul business rates again, reducing bills for smaller shops but increasing costs for larger ones (like Primark) that help “anchor” town and city centres.

Primark operates more than 190 stores across the UK, part of its 460-store global network. These large stores play a key role in drawing footfall to high streets, helping smaller businesses nearby thrive.

But experts say that the new business rates proposals could put these very stores at risk.

“The changes mean there is going to be particular pressure on big stores, which are needed to anchor high streets,” Weston said. “We would love to see that reconsidered.”

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Could large high-street stores close?

The British Retail Consortium (BRC) recently warned that up to 400 large-format shops could struggle if a new business rates surtax is applied to premises with a rateable value above £500,000.

According to global tax firm Ryan, these shops could collectively see their bills rise by nearly £46 million annually.

Alex Probyn, a property tax expert at Ryan, called the measure “a stealth tax penalising the very businesses that anchor our high streets and provide mass employment.”

He added that such charges could undermine investment, growth, and support for local economies, working against the Government’s stated aim of helping retail thrive.

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For consumers, the potential impact could be tangible. Larger stores often serve as the main draw for shoppers, offering competitive prices and a wide variety of products.

If these retailers struggle to cover rising costs, some stores may close, leaving gaps on high streets and reducing options for shoppers.

While the Government has signalled its intent to protect smaller shops, Weston’s warning highlights the delicate balance between taxation and maintaining vibrant retail hubs.

For now, UK shoppers may want to keep an eye on their favourite high-street names, because higher taxes could mean fewer choices in the future.

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