Copyright independent
Major British supermarkets are pressing the Chancellor to exempt them from a new business rates surtax, warning that consumers will ultimately face higher prices. A letter from the British Retail Consortium (BRC), signed by executives from Tesco, Sainsbury's, Aldi, Asda, Iceland, Lidl, Marks & Spencer, Morrisons, and Waitrose, was sent to Rachel Reeves. The proposed surtax, expected to be confirmed in next month’s autumn Budget statement and effective from next April, would apply to properties with a rateable value over £500,000. Supermarket bosses stated that their ability to absorb additional costs is diminishing, and further taxes would make it harder to deliver value, potentially prolonging high food inflation into 2026. The BRC highlighted that large retail premises, despite being a tiny proportion of all stores, already account for a third of retail’s total business rates bill.
