Overview
- An open letter coordinated by the British Retail Consortium and signed by leaders at Tesco, Sainsbury’s, Asda, Aldi, Lidl, Morrisons, M&S, Iceland and Waitrose urges an exemption for supermarkets.
- The proposed surtax targets premises with rateable values above £500,000 to finance lower business rates for smaller high‑street firms, with final plans due in the autumn Budget and implementation from April 2026.
- Retailers warn higher bills would be passed to shoppers, citing thin margins and an estimated £7bn in additional costs this year from measures including higher employer National Insurance and packaging levies.
- Trade bodies for retail and hospitality now warn the overhaul could endanger up to 120,000 jobs and force about 500 site closures, arguing large stores act as anchors for local high streets.
- The Treasury says tackling food inflation is a priority and points to lower rates for butchers, bakers and other shops, while maintaining that the overall system will remain revenue‑neutral.