Bosses from 44 UK retailers – including Tesco, Sainsbury’s, Lidl and M&S – have written to chancellor Jeremy Hunt calling for a freeze in the business rates multiplier expected to be announced in the upcoming Autumn Statement.

According to the British Retail Consortium (BRC), the retail industry pays over £7 billion in annual business rates. Without action from the chancellor, it said the business rates multiplier will rise in April 2024, in line with the September inflation figure – expected to be over six per cent – resulting in an increase of more than £400 million a year on retailers’ business rates bills.

“Retailers have worked hard to absorb as much additional cost as possible amidst record cost inflation over the past 18 months,” the letter read in part.

“Operating profit margins have significantly contracted as a result, as the CMA reported in July.”

BRC chief executive Helen Dickinson warned that a £400 million rates rise would “cost jobs, harm the economy, and damage the vibrancy of our town and city centres”.

Noting that business rates must be paid in full whether firms are making a profit or a loss, she added that this would make the difference between retailers being “forced to close existing stores rather than opening new ones”.

“The chancellor must freeze rates to help keep a lid on retailers’ already high costs,” she said. “With shop price inflation having eased for three consecutive months, it is vital that the government does not add to the cost burden and undermine this progress.”

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