The UK’s largest retailers and the shopworkers’ union Usdaw have warned the Government that raising business rates for physical stores could endanger 90,000 retail jobs by 2031, according to new research. The Retail Jobs Alliance (RJA), which includes Asda, Kingfisher, Morrisons, Marks & Spencer, Primark, Sainsbury’s, and Tesco, has urged the Government to exclude all bricks-and-mortar shops from the higher business rates multiplier introduced last year. They argue that further increases in business rates would affect their ability to protect jobs, invest in stores and keep prices down.
The warning follows a Labour Party Conference motion, supported by Usdaw, that also called for exempting physical stores from higher rates.
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Usdaw’s general secretary, Joanne Thomas, welcomed the Government’s recent business rates reduction for pubs and clubs but insisted that a wider approach is needed. She noted Labour’s push to create fairer competition between high-street stores and online rivals, insisting that any high-street revival plan must include exempting large retail spaces from higher rates. She noted that large stores often act as anchors for high streets, drawing the footfall that sustains surrounding businesses.
The RJA highlighted that retailers already pay four times more in business rates than their share of the UK’s GDP. Without action, the group said, large stores would be less able to protect jobs, hold down prices and invest in their communities. The alliance’s plea comes as the Chancellor prepares for pre-budget discussions with retail, hospitality, and leisure leaders.
