Retail chiefs urge Chancellor to cut business rates, warn reforms could hurt High Street
Around ten leading store bosses met Rachel Reeves at Number 11 to press for changes to property tax proposals they say will hit anchor shops and risk closures
Top executives from about ten of Britain’s best-known retail chains told Chancellor Rachel Reeves on Sept. 3 that planned changes to business rates risk piling more pain on an already struggling High Street and called for cuts to the tax.
Industry leaders said the proposals, which Labour frames as a way to level the playing field between bricks-and-mortar shops and online rivals, would raise bills for larger premises and could unintentionally penalise prominent high-street stores that act as anchors for local shopping districts. One retail executive who attended the meeting described Reeves as “the face of doom” after what they characterised as crippling tax hikes.
Industry figures at the Downing Street meeting included John Lewis chairman Jason Tarry and B&Q chief executive Graham Bell, among others. Attendees told the Chancellor that the changes — which would increase liabilities for larger physical premises with the stated aim of capturing warehouses and distribution centres used by online vendors — risk hitting the anchor stores that draw footfall and business to nearby shops.
Retailers say the mechanics of the proposed reform would transfer rates burdens to some high-street businesses rather than to the intended online infrastructure. They warn that around 4,000 shops could be forced to pay higher rates under the plans, exacerbating pressures from falling footfall and rising costs.
Labour ministers have defended the approach as an attempt to modernise the property tax system and ensure firms competing in the same market face comparable fiscal treatment, arguing the change is needed as shopping increasingly shifts online. The Chancellor’s office has said the government wants to support both towns and the wider economy, but the detailed design of the new valuations and any transitional arrangements remain central to the debate.
Retail trade groups have pressed for immediate relief or a reworking of the reforms to protect smaller towns and preserve anchor tenants that local economies rely on. Executives at the meeting urged a combination of cuts, targeted exemptions or phased implementation to prevent abrupt increases in bills that could prompt shop closures or accelerated consolidation.
Business rates have been a recurring flashpoint in Westminster for years, with successive governments balancing revenue needs against the policy goal of supporting physical retail. The sector’s leaders framed the Sept. 3 meeting as a warning that poorly targeted changes could speed the decline of high streets, undermining jobs and local economic activity.
The Chancellor heard calls for concrete measures to shield vulnerable shops and to consult further with industry on the valuation framework. Retailers said they expect further discussions in the coming weeks as firms press for clarity on timing, the scope of premises affected and any transitional relief. The outcome will be watched closely by investors, lenders and local authorities that rely on the high street for business rates revenue and employment.