Boss of B&Q owner warns Reeves against ‘unfair’ property tax raid

Core Viewpoint - The CEO of Kingfisher, Thierry Garnier, has expressed concerns that the proposed overhaul of business rates by Chancellor Rachel Reeves will disproportionately affect high street retailers, favoring online sellers instead [1][4]. Group 1: Business Rates Impact - The planned increase in business rates for department stores, supermarkets, and large out-of-town shops may hinder the ability of many retailers to compete effectively [2]. - Kingfisher anticipates a higher tax burden due to the business rates changes, which Garnier argues creates an uneven playing field between brick-and-mortar stores and online retailers [4]. - The British Retail Consortium estimates that the changes will impact around 4,000 high street stores, indicating a significant potential disruption to the retail landscape [7]. Group 2: Economic Context - Rachel Reeves is aiming to raise tens of billions of pounds to address a public finance shortfall, with widespread tax increases expected in her autumn Budget [5]. - Companies are facing challenges with rising costs and reduced demand, leading to the lowest margins since the 2009 financial crisis, as reported by S&P Global [6]. - The increase in minimum wage and employer National Insurance rates has compelled companies to reduce their workforce, further complicating the economic environment for retailers [6]. Group 3: Legislative Intent vs. Reality - Labour's initial proposal aimed to create a level playing field between high street and online retailers by increasing taxes on large warehouses while lowering rates for high street stores [8]. - However, analysis suggests that high street retailers are likely to bear the brunt of the proposed changes, contradicting the intended benefits of the reform [8].