The chiefs of Tesco and Sainsbury’s have thrown their weight behind calls for Chancellor Rachel Reeves to rethink plans to raise business rates for larger properties including supermarkets.
Tesco Group CEO Ken Murphy and Sainsbury’s CEO Simon Roberts said it would worsen the plight of high streets by undermining investment from larger retailer who act as anchors for footfall.
Murphy told The Telegraph the plans threatened “investments in customers, colleagues and communities”.
“Increasing the burden on large shops would hinder rather than help our town centres,” Murphy said. “Many of these shops are anchor stores in their local communities.”
Read more: Thousands of supermarkets face higher business rates from 2026 as bill becomes law
Roberts said: “The changes being proposed will further increase the negative impact of business rates and won’t stimulate the growth or investment into our high streets and jobs that we all want to see.
“The government promised fundamental reform to level the playing field, but the changes we are hearing about will not deliver this – they will not stimulate growth or investment.”
Under the Non-Domestic Rates Bill, which became law earlier this year, business rates are set to rise from 2026 across all sectors for properties with a rental value above £500,000 a year. The additional tax collected will fund a business rates discount for properties in retail, hospitality and leisure (RHL) with a lower rental value.
The BRC has called for the government to exempt all shops from the new higher rate.
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