Retailers and Usdaw urge Government not to raise business rates
Some of the UK’s biggest retailers have joined with shopworkers’ union Usdaw to urge the Government not to increase business rates on shops, after new research suggested existing cost pressures could put around 90,000 jobs at risk by 2031.
The Retail Jobs Alliance (RJA), whose members include Asda, Kingfisher, Morrisons, Marks & Spencer, Primark, Sainsbury’s and Tesco, has called on the Government to exempt all bricks-and-mortar stores from the higher business rates multiplier introduced at last year’s Autumn Budget.
Subscribe to TRBThe RJA’s research found that, even with no further changes, existing cost pressures could lead to the loss of around 90,000 jobs by 2031, with young people and already struggling towns hardest hit. The figure projects forward the fall in retail employees seen in official HMRC and ONS data since 2023.
The alliance warned that any further rise in the higher multiplier would push job losses well beyond that level.
The call follows Labour Party Conference, where delegates passed a motion tabled by Usdaw urging the Government to exempt all bricks-and-mortar shops from the higher business rates multiplier.
On Tuesday, the Chancellor met retail, hospitality and leisure chief executives for pre-budget talks.
Martin Beck, chief economist at WPI Strategy, the consultancy which produced the analysis for the Retail Jobs Alliance, said: “Retailers are already absorbing additional costs and further increases in business rates would inevitably affect their ability to protect jobs, invest in stores and keep prices down.
“This new research highlights that ministers must proceed carefully, because when the cost of running shops rises, the consequences are felt not only by retail workers and high streets, but also by households through added pressure on the cost of living.”
Joanne Thomas, Usdaw general secretary, said: “We welcome the action the Government has already taken in reducing business rates for pubs, clubs and live music venues.
“Alongside this, Labour has a manifesto commitment to level the playing field between in-store retail and online giants. So, confirmation from the Chancellor that the Government will be producing a high streets strategy is welcome, but it is essential that it is linked to the wider industrial strategy, including exempting large retail premises from the higher rates multiplier.”
The RJA said that retail already pays a share of business rates more than four times its contribution to UK GDP and warned that a further rise in the higher multiplier would leave large stores less able to protect jobs, hold down prices and invest in their communities.
It also highlighted how large stores often act as anchors for high streets, drawing the footfall that sustains surrounding businesses.
