The outgoing managing director of John Lewis has told reporters that reform of business rates could be transformational for the UK economy, while a rise for larger retailers could be felt across the High Street.

In a press conference held at John Lewis’s Oxford Street store held on 3 September, Ruis said a move by the government to reform business rates in line with promises it made in the 2024 election campaign should be announced at this year’s budget, due to be held on October 28.

“We believe passionately that a reform of business rates will change the economy, change employment, and as a national retailer help us regionally,” Ruis told Drapers.

“We are so passionate about being in those regional centres, and the brunt of business rates is carried by retailers. If we can get that reform, that is much needed, the economy moves fastest with retail and hospitality.

In the 2024 Labour manifesto, the party pledged to “replace the business rates system” in England to “raise the same revenue but in a fairer way”.

Under the new prime minister Andy Burnham, the government implemented a 20 per cent cut in business rates for pubs, social clubs and live music venues and has launched a business rates review for pubs and hotels.

The cut for smaller venues has raised fears among larger businesses that their own rates could be increased in the budget to balance out government spending.

Earlier this week the Retail Jobs Alliance (RJA), a coalition of retailers including Asda, Marks & Spencer (M&S) and Tesco, wrote a joint letter to the Burnham warning that a move to increase the higher business rates multiplier for stores with a rateable value above £500,000 would raise prices for shoppers across the country.

In his press conference, Ruis warned that a rates rise on large retailers would also negatively impact small retailers.

“No-one wants those city centres, those town centres and those high streets [to have] closed shops,” Ruis said, per Drapers reporting.

“A lot of the smaller stores who won’t be affected by it are also against it because they need people like us. John Lewis is the anchor to pretty much everywhere we are, and people drive into that town centre to visit us, and then visit everyone else as well.”

Ruis announced last month that he would step down from his role to “pursue new projects”, amid warnings by the firm’s chair that it is facing a tougher trading environment with lower sales and higher costs.

---