Treasury Set to Impose Business Rates Surtax on Large Stores to Fund Small-Business Relief

Overview

• Reports indicate a Treasury reversal that would include big supermarkets in the new higher business rates tier, after earlier expectations of an exemption.
• The planned surtax would target commercial properties with a rateable value above £500,000 to finance permanent discounts for smaller retail, leisure and hospitality firms.
• Exact surtax rates have not been released, with full details expected at Wednesday’s Autumn Budget.
• The British Retail Consortium, Westfield and other major retailers caution the higher burden could mean price increases, weaker investment and potential store closures.
• London faces a particularly sharp impact, with the Heart of London Business Alliance estimating the capital’s total bill could rise about 26% from £9bn to £11bn.