Retail Leaders Call for Business Rates Reform to Kickstart a Crucial Shift for the Sector

In a powerful united stance, over 70 leading British retail executives, including top figures from M&S, Primark, Poundland, Ikea, and Tesco, have called on the government to reform the business rates system. With the Autumn Statement approaching, these industry leaders, in a letter coordinated by the British Retail Consortium (BRC), have urged Chancellor Rachel Reeves to introduce much-needed changes to level the playing field for the retail sector.

Retailers facing ‘immense financial pressure’

This call to action is particularly timely, as retail businesses are facing immense financial pressure under the current tax regime. The retail bosses are advocating for a Retail Rates Corrector—a 20% reduction in business rates paid on retail properties. Currently, the retail sector shoulders a disproportionate 7.4% of all UK business taxes, contributing an estimated £33 billion annually. Alarmingly, one fifth of this total comes from business rates alone.

Notable retail leaders such as M&S' Stuart Machin, Tesco UK's Matthew Barnes, Morrisons' Rami Baitiéh, and Kingfisher's Thierry Garnier have signed the letter, emphasising the urgent need for reform. “Now is the time to level the playing field between industries,” they stated. “A Retail Rates Corrector, with a 20% reduction for retail properties of all sizes and locations, is the best way to achieve this.”

“Support retailers to invest in jobs”

Helen Dickinson, CEO of the BRC, echoed these sentiments, describing retail as the "golden goose" of the UK economy. Despite its contribution far exceeding its size, she warned that the current system is unsustainable. "Rebalancing the tax system is essential for creating a fairer landscape where all industries contribute proportionately. This reform would not only support retail businesses but also foster greater investment in jobs, communities, and local economies."

The Autumn Statement represents a critical moment for the government to take action that could reshape the future of retail. These reforms could mean an invigorated market, with businesses better positioned to hire, develop talent, and thrive in the long term.

“As specialists in retail recruitment, we know that a healthier and more equitable financial environment for retailers translates directly into broader opportunities for growth and employment across the sector,” said KPI’s Head of Retail, Fran Webb.  “An adjusted tax burden would enable retailers to invest more in their workforce, innovation, and expansion—ultimately benefiting not only businesses but also the communities they serve and the wider economy.”