The UK’s largest supermarkets are calling on the chancellor to exclude shops from a brand new enterprise charges surtax, warning that consumers will bear the brunt of upper costs.
Tesco, Sainsbury’s, Marks & Spencer, Waitrose, Morrisons, Asda, Aldi and Lidl are among the many shops which have signed a letter addressed to Rachel Reeves, arguing that easing taxes on grocers would assist curb meals inflation.
Business group the British Retail Consortium (BRC), which organised the letter, mentioned massive outlets might face larger enterprise charges if included within the authorities’s proposed surtax on properties valued at greater than £500,000.
Smaller excessive avenue corporations are anticipated to profit from lowered enterprise charges underneath the federal government’s plans.
“If the industry faces higher taxes in the coming Budget – such as being included in the new surtax on business rates – our ability to deliver value for our customers will become even more challenging, and it will be households who inevitably feel the impact,” the letter reads.
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Chancellor faces robust price range selections
“Large retail premises are a tiny proportion of all stores, yet account for a third of retail’s total business rates bill – meaning another significant rise could push food inflation even higher.”
The supermarkets are asking Ms Reeves to “address retail’s disproportionate tax burden”, saying that doing so would “send a strong signal of support for the industry and of the government’s commitment to tackling food inflation”.
The chancellor is extensively anticipated to lift taxes after bleak financial forecasts and a string of reversals on welfare cuts, which have made it more durable for her to stay to her borrowing limits.
Helen Dickinson, the BRC’s chief govt, mentioned: “Supermarkets are doing everything possible to keep food prices affordable, but it’s an uphill battle, with over £7 billion in additional costs in 2025 alone.
“From larger nationwide insurance coverage contributions to new packaging taxes, the monetary pressure on the trade is immense.”
The Treasury has been contacted for remark.
