Business rates surtax
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UK supermarkets ask chancellor for exclusion from business rates surtax
Yahoo Finance· 2025-10-27 10:05
Core Viewpoint - Several of the UK's largest supermarket operators are requesting an exemption from a proposed business rates surtax, arguing that it would increase costs and potentially lead to higher food prices for consumers [1][2]. Group 1: Request for Exemption - Major supermarket chains including Aldi, Asda, Lidl, Morrisons, Marks & Spencer, Sainsbury's, and Tesco have signed a letter to Chancellor Rachel Reeves seeking exemption from the surtax on properties valued above £500,000 ($666,220) [1][2]. - The letter emphasizes that including supermarkets in the surtax would add to the sector's costs, risking higher prices for households and challenging their ability to deliver value [2][3]. Group 2: Impact on Food Prices and Retail Sector - The signatories highlight that large retail premises, while a small proportion of all stores, account for a third of the total business rates bill in the retail sector, indicating that further tax increases could exacerbate food inflation [2][4]. - The British Retail Consortium (BRC) argues that addressing the retail sector's tax burden would demonstrate government support for the industry and commitment to tackling food inflation [3][4]. Group 3: Employment and Economic Contribution - The BRC CEO noted that large retail stores sustain nearly one million jobs in the UK and contribute significantly to the retail sector's business rates, despite being a small fraction of total stores [4]. - The letter suggests that exempting supermarkets from the surtax would not only help mitigate food inflation but also support jobs and investment across the country [4][5].