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In an article published by The Times, Roberts and Lillis stress that the outdated business rates regime is the primary barrier to growth within the retail sector.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

UK Property Sales Expected to Rise by 10%...

February 29, 2024

Made in Britain applications surge following Trump tariffs...

May 2, 2025

Skills Crisis: 85% of young people feel they...

September 15, 2023

Unlocking Success: The Vital Role of SEO for...

December 31, 2023

Beyond Sharm: Egypt’s Hidden Red Sea Gems

February 27, 2025

Heinz signature tomato ketchup soars in price by...

November 15, 2022

Klarna slashes 1,000 jobs as AI reshapes business...

August 28, 2024

Budget 2024: Record £40bn tax hike set to...

October 30, 2024

Typhur Sync Quad Smart Wireless Meat Thermometer Review

June 13, 2024

Waracle secures three-year digital transformation partnership with SP...

August 26, 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

    • Starmer accused of betraying farmers as British food pledge stalls

      August 22, 2025
    • Fed rate cut looms after Powell’s Jackson Hole speech

      August 22, 2025
    • Tariff “Inclusion” Process Comes with High Costs, Absurd Outcomes, and Extra Cronyism

      August 22, 2025
    • Trump DOJ releases ‘thousands’ of Epstein files to House Oversight Committee

      August 22, 2025
    • Jackson scathing dissent levels partisan charge at colleagues after high-profile ruling

      August 22, 2025
    • ‘Leftist’ taxpayer-funded academy sparks backlash after moving against Trump’s rollback of key regulation

      August 22, 2025

    Categories

    • Business (8,857)
    • Investing (2,235)
    • Politics (16,464)
    • Stocks (3,228)
    • 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