Retailers urge Healey to reform business rates and reject warehouse tax

Summarised from 2 outlets · Updated 10 Oct, 03:48 · Archive

Retail bosses are warning the Government against raising business rates on warehouses, saying it would push up prices for shoppers.

Retail industry leaders are warning the Government against raising business rates on warehouses to fund tax cuts for high street shops. The Telegraph reports that Andy Burnham suggested such a warehouse tax before becoming Prime Minister, and the IPPR think tank proposed a £1.5 billion raid on online retailers including Amazon.

Ken Murphy, chief executive of Tesco, told reporters on Thursday that the current business rates system is 'fundamentally unfair'. He said retailers pay on average four times their fair share of rates and urged the Chancellor to exempt all retail businesses from the £500,000 rateable value threshold. The British Retail Consortium reports that retailers pay 72p in tax for every pound they make, making retail the second-highest taxpaying sector after hospitality.

Jason Tarry, chairman of John Lewis, warned in the Telegraph that raising rates on warehouses was based on 'a fundamental misunderstanding of how modern high streets work'. He argued that John Lewis stores and Waitrose branches act as anchor tenants that generate footfall for surrounding independent shops, pubs and cafes. Tarry said penalising anchor retailers through higher rates would harm these smaller businesses and force major retailers to close expensive high street operations.

How it is being reported

• John Lewis boss issues dire 'warehouse tax’ warning to Labour ahead of BudgetThe chairman of John Lewis has issued a dire "warehouse tax" warning to Labour ahead of this month's Budget. Shortly before becoming Prime Minister, Andy Burnham suggested an increase in business rates for warehouses and out-of-town retail developments could pay for tax breaks for high street shops. Separately, the IPPR think tank proposed earlier this week a £1.5billion raid on online retailers, including Amazon, to support bricks-and-mortar businesses. Supporters of a warehouse tax argue it would rebalance competition between high street shops, which pay high business rates, and online…GB News · 10 Oct, 03:38
• Tesco urges Healey to slash ‘fundamentally unfair’ business ratesThe boss of Tesco has urged John Healey to reform the “fundamentally unfair” business rates system and avoid a so-called warehouse tax. Ken Murphy, chief executive of the UK’s biggest grocer, has become the latest retail industry figure to urge the Chancellor to cut taxes on high street businesses, as Andy Burnham pledges a revival [...]City AM · 8 Oct, 11:49

In this story: Tesco · John Lewis · Ken Murphy · Jason Tarry · John Healey · Andy Burnham · British Retail Consortium · Amazon

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem