By Alex Nelson

Copyright thescarboroughnews

Up to 400 of Britain’s biggest shops could shut under new business rates tax plansThe BRC warns closures may mean 100,000 job losses and emptier high streetsLarge supermarkets and department stores are most at risk from the surtaxShoppers could face higher prices, less choice, and reduced convenienceRetail bosses urge the Chancellor to rethink ahead of the autumn Budget

Britain’s high streets and retail parks could be on the brink of another major shake-up, with hundreds of the country’s largest shops at risk of shutting their doors for good.

The British Retail Consortium (BRC) has warned that as many as 400 stores could close if the Government pushes ahead with plans to impose a new higher business rates tax band on big retail sites.

Business rates are essentially a tax on commercial property. While retail makes up just 5% of the economy, it already shoulders more than 20% of the total business rates bill.

Which stores could close?

The BRC says hundreds of “large-format” stores – from supermarkets to department stores – could close.

These are the giant anchor stores that act as magnets for shoppers; think large supermarkets, flagship department stores, and big-box outlets found in town centres and retail parks.

Unlike small independents, these stores play a unique role in Britain’s retail ecosystem. They pull in huge footfall, which in turn supports surrounding cafes, pubs, restaurants and smaller shops.]

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Why it matters for shoppers

If these larger shops disappear, not only would consumers lose local access to major retailers, but the ripple effect could hollow out already fragile high streets.

The BRC estimates that closing 400 shops of this scale could mean up to 100,000 job losses nationwide.

On top of that, councils could lose “well over” £100 million a year in business rates revenue, leaving local communities with emptier high streets and fewer services.

For consumers, the impact would be felt in several ways:

Higher prices: Large stores, already running on thin profit margins of just 2-4% in food retail, may have no choice but to pass on costs to shoppers.Reduced choice: The loss of major anchor stores could make it harder for customers to find the products they need locally.Less convenience: With fewer big stores, shoppers may have to travel further – or rely more heavily on online shopping.

Why are these shops at risk?

Business rates are a tax on commercial properties, and although retail accounts for only 5% of the economy, the sector pays more than 20% of the entire bill. Large stores alone account for around a third of all payments.

The BRC argues that the proposed new surtax – an additional tax charged on top of an existing tax – on properties with a rateable value of more than £500,000 would unfairly target the biggest retail outlets.

These outlets are already dealing with rising employment costs, higher energy bills, and squeezed margins.

BRC chief executive Helen Dickinson said “400 more large stores could disappear if the Government forces them into its new higher tax band. This would mean up to 100,000 jobs lost, emptier high streets, and less revenue for the Exchequer.”

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What happens next?

The BRC is urging Chancellor Rachel Reeves to rethink the plans in the autumn Budget, instead of piling costs onto large retailers.

It wants the Government to look at shifting a share of the burden onto other commercial properties – such as large office blocks – where the impact on jobs and consumer prices would be far lower.

Retail bosses, including leaders from John Lewis, have already met with Reeves to discuss business rates reform. The Treasury has signalled it is open to changes, particularly around small business relief rules, but no firm decisions have yet been made.

For now, Britain’s shoppers face an uncertain future. If ministers press ahead with the surtax, it could reshape the retail landscape, taking away some of the nation’s most familiar stores and changing the face of the high street for years to come.

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