Proposed business rates increase threatens 120,000 jobs

A proposed £1.7 billion business rates tax increase on large businesses could jeopardise 120,000 jobs, industry leaders have warned.

The British Retail Consortium (BRC) and UK Hospitality have expressed concerns over the Chancellor’s plans to raise business rates for superstores, hotels, and restaurants, arguing that it could lead to site closures. The proposals could mean that 500 premises would be at risk of closure, endangering some 120,000 jobs.

High Street and hospitality operators have warned that the scheme will backfire as larger venues in their sectors will be hit, too. They have warned tax rises will lead to closures as stores become unprofitable – costing jobs and robbing town centres of big ‘anchor’ tenants that bring in shoppers and boost business for smaller firms.

Helen Dickinson, Chief Executive at the BRC, said “Introducing a business rates surtax would only add to inflationary pressures, leading to store closures and job losses. We urge the Chancellor to exempt these businesses from the surtax, helping safeguard hundreds of anchor stores and the vital jobs they sustain.”

Separate figures from the BRC show fresh food prices are surging at the fastest pace since January 2024 amid fears that higher taxes will pile further pressure on supermarket bills. The pace of inflation for these products hit 4.3 per cent year-on-year in October – up from 4.1 per cent the month before. Beef, poultry and fruit have seen the sharpest increases due to the rising costs of production, according to the BRC. Supermarkets have warned food prices could jump even further if the Chancellor does not hand the sector a reprieve from rising costs at next month’s Budget.