High street crisis deepens with 400 of Britain’s largest shops at risk of closure
Warning that hundreds of UK shops face closure in business rate change
- The British Retail Consortium (BRC) has warned that 400 large shops, including supermarkets and department stores, are at risk of closure if the government proceeds with a proposed higher business rates tax band for premises valued over £500,000.
- The BRC stated that these outlets, already facing pressure from soaring employment costs, high taxes, and rising rates, could lead to the loss of up to 100,000 jobs and over £100 million in annual business rates revenue for local councils if they shut down.
- Despite accounting for just five per cent of the economy, the retail industry shoulders more than 20 per cent of all business rates bills, with large stores paying around a third of the total.
- BRC Chief Executive Helen Dickinson urged the Chancellor to exclude large shops from the new higher business rates tax band in the autumn budget, arguing this would not cost the Exchequer and would secure jobs and high streets.
- The warning follows Chancellor Rachel Reeves' plans to consider reforms to the business rates system, aiming to cut red tape and improve growth, after firms saw their business rates bills increase earlier this year.