Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Sainsbury’s boss and retail union warn 17,000 shops face closure without business rates reform

by August 12, 2024
August 12, 2024
Sainsbury’s boss and retail union warn 17,000 shops face closure without business rates reform

Over 17,000 shops across the UK could face closure in the next decade unless the Labour government takes urgent action to reform the business rates system, according to warnings from Simon Roberts, CEO of Sainsbury’s, and Paddy Lillis, General Secretary of the Union of Shop, Distributive and Allied Workers (Usdaw).

In an article published by The Times, Roberts and Lillis stress that the outdated business rates regime is the primary barrier to growth within the retail sector. They highlight the impact of increasing business rates, which have risen sharply in recent years, and caution that these financial pressures could lead to tens of thousands of job losses.

“The No 1 barrier to growth in our industry is the outmoded business rates system,” they argue, noting that previous governments have only made minor adjustments to the system without addressing its core issues. The result, they warn, has been a steady decline in high street shops, stunted economic growth, and widespread job losses.

Research conducted by Development Economics, and shared with *The Times*, supports these concerns, suggesting that a 20 per cent reduction in the headline business rates could save retailers £1 billion in the first year alone. This reduction could safeguard or create over 17,000 jobs, according to the findings.

While the research acknowledges that such a significant rate cut would initially reduce tax revenues for the Treasury, it predicts that the resulting boost in economic activity would generate net positive returns of £70 million annually for the government within a decade.

However, without intervention, Development Economics warns that 17,300 stores could close by 2033-34 under a worst-case scenario, with an average of 15 closures per town across England. This could result in the loss of approximately 42,000 jobs.

Roberts and Lillis argue that while reforming business rates isn’t a “silver bullet” for all economic challenges, it is a crucial first step towards revitalising growth, boosting employment, and securing sustainable funding for public services.

Business rates, which are calculated based on the rateable value of commercial properties, have seen a significant increase, with the multiplier rate rising from 51.2p to 54.6p. Despite representing just 5 per cent of the economy, the retail sector contributes about a fifth of the £32.1 billion in business rates revenues that the government expects to collect this year.

In its general election manifesto, the Labour Party pledged to overhaul the business rates system, aiming to create a more equitable environment between digital and bricks-and-mortar retailers. Digital retailers, with their minimal physical footprints, typically face much lower business rates.

With the Treasury under pressure to manage tight public finances, Chancellor Rachel Reeves faces the challenge of balancing budget cuts and potential tax increases. As part of its commitment to reform, the Treasury has pledged to replace business rates with a fairer system that levels the playing field, incentivises investment, addresses empty properties, and supports entrepreneurship.

Read more:
Sainsbury’s boss and retail union warn 17,000 shops face closure without business rates reform

0
FacebookTwitterGoogle +Pinterest
previous post
Trump legal cases in limbo after SCOTUS immunity ruling, freeing up schedule to campaign
next post
Government considers capping landowners’ profits from green belt sales to meet housing targets

You may also like

Windfall tax is likely to be extended

October 28, 2022

Amazon under fire for tripling sellers’ fees and...

June 14, 2023

Adam Neumann Makes £395m Bid to Regain Control...

March 26, 2024

NatWest and Lloyds to axe a further 81...

March 31, 2023

Green Technology Innovation and Sustainability: An In-Depth Look...

October 16, 2024

Digital Tools for Boosting SME Efficiency Safely

February 7, 2025

What do digital strategy consultants do?

September 9, 2022

Twitter’s top advertisers leave en masse following Musk...

November 24, 2022

New RMT walkout means three new train strikes...

May 19, 2023

Next UK government to benefit from easing inflation...

July 3, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Harmony Squad: Supreme Court Issues Six Unanimous Decisions

      June 5, 2025
    • Quick Login to AmourFactory: A Beginner’s Guide

      June 5, 2025
    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025

    Categories

    • Business (8,149)
    • Investing (2,011)
    • Politics (15,535)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved