The Chancellor has been warned by hospitality groups and major retailers that Rachel Reeve’s planned business rates could put 120,000 jobs at risk and leader to “store closures.”
From April 2026 the £1.7 billion reform will affect 5,000 commercial properties worth over £500,000 which includes superstores, holiday parks, restaurants and hotels.
The British Retail Consortium (BRC) and UK Hospitality are warning the Chancellor’s changes could see 120,000 jobs lost as up to 500 sites may close amid soaring bills.
Helen Dickinson, chief executive of the British Retail Consortium, warned, “Introducing a business rates surtax would only add to inflationary pressures, leading to store closures and job losses.”
Kate Nicholls, chair of UK Hospitality is advising the Chancellor to “back businesses so they can develop locations where people want to live, work and invest.
Shoppers are being hit with higher grocery bills and fresh food prices are soaring to at their fastest since 2024 and in October rose 4.3% compared to 4.1% the month before, the British Retail Consortium said.
Martin Sartorius, Principal Economist, CBI, said, “The retail sector remains in a prolonged downturn, with October marking the thirteenth consecutive month of falling annual sales volumes.
“Firms reported that consumer confidence remains poor, compounded by elevated caution ahead of next month’s Autumn Budget. Weak demand conditions were also reflected in further sales declines across wholesaling and motor trades.
“Persistent uncertainty ahead of the Autumn Budget is deepening the strain on retailers and other distribution firms that are still grappling with the effects of last year’s fiscal decisions.
“To help rebuild confidence and encourage growth, the Chancellor should reaffirm her commitment to no further business tax hikes in November.
“Additionally, the government should rethink the Employment Rights Bill to ensure that it does not put undue constraints on flexible working, which could particularly impact young people who often look to retail for their first jobs.”
A Treasury spokesperson said, “We’re making business rates fairer by introducing permanently lower rates for retail, hospitality and leisure from April, funded by a higher rate on less than one per cent of the most valuable business properties.
