UK supermarket giants join up to warn business rates rise could push up costs
Supermarkets say tax rises could push food prices higher
- 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.