Sainsbury’s chief executive Simon Roberts has warned that thousands of shops could be permanently closed over the next 10 years.

In an article for the Times, the supermarket boss and Paddy Lillis, general secretary of the Union of Shop, Distributive and Allied Workers (USDAW), say that upwards of 17,000 stores could shut their doors unless the Labour government overhauls business rates.

They also warn that a significant hike in business rates bills could mean tens of thousands of retail jobs disappear in the next decade.

“The number one barrier to growth in our industry is the outmoded business rates system,” they said.

They went on to say: “successive governments have promised reform but have only ever tinkered around the edges. The result? Shops closing, jobs lost, economic growth stunted.”

Prior to the general election, the British Retail Consortium (BRC), which has been advocating for a business rates upheaval for several years, said that Labour's manifesto recognised that the current system is "broken" and limits business investment.

Helen Dickinson, chief executive of the BRC said in June that the new system brings down the disproportionate burden on retail, which currently pays 22 per cent of the total rates bill while accounting for only five per cent of the economy.

She says that reforms could incentivise vital investment and help "diverse shopping destinations to thrive.”

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