Supermarkets Warn Shoppers Could Face Higher Prices If Business Rates Rise - Beritaja

The UK's largest supermarkets are calling connected the chancellor to exclude stores from a caller business rates surtax, informing that shoppers will carnivore the brunt of higher prices.

Tesco, Sainsbury's, Marks & Spencer, Waitrose, Morrisons, Asda, Aldi and Lidl are among the stores that person signed a missive addressed to Rachel Reeves, arguing that easing taxes connected grocers would thief curb nutrient inflation.

Industry group the British Retail Consortium (BRC), which organised the letter, said ample shops could look higher business rates if included successful the government's projected surtax connected properties weighted astatine much than £500,000.

Smaller precocious thoroughfare firms are expected to use from reduced business rates nether the government's plans.

"If the manufacture faces higher taxes successful the coming Budget - specified arsenic being included successful the caller surtax connected business rates - our expertise to present worth for our customers will go moreover much challenging, and it will beryllium households who inevitably consciousness the impact," the missive reads.

"Large unit premises are a mini proportionality of each stores, yet relationship for a 3rd of retail's full business rates measure - meaning different important emergence could push nutrient ostentation moreover higher."

The supermarkets are asking Ms Reeves to "address retail's disproportionate taxation burden", saying that doing truthful would "send a beardown awesome of support for the manufacture and of the government's committedness to tackling nutrient inflation".

The chancellor is wide expected to raise taxes aft bleak economical forecasts and a drawstring of reversals connected use cuts, which person made it harder for her to instrumentality to her borrowing limits.

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Helen Dickinson, the BRC's main executive, said: "Supermarkets are doing everything imaginable to support nutrient prices affordable, but it's an uphill battle, pinch complete £7 cardinal successful further costs successful 2025 alone.

"From higher nationalist security contributions to caller packaging taxes, the financial strain connected the manufacture is immense."

The Treasury has been contacted for comment.