A letter, organised by business group the British Retail Consortium (BRC) and addressed to Rachel Reeves, argues that limiting the tax burden on grocers would assist sort out meals inflation.
Bosses of the UK’s largest supermarkets are urging the Chancellor to exempt outlets from a brand new enterprise charges surtax, warning that consumers will bear the brunt of upper prices.
A letter, organised by business group the British Retail Consortium (BRC) and addressed to Rachel Reeves, argues that limiting the tax burden on grocers would assist sort out meals inflation.
It has been signed by UK executives and administrators at Tesco, Sainsbury’s, Aldi, Asda, Iceland, Lidl, Marks & Spencer, Morrisons and Waitrose.
The BRC stated it’s involved that enormous outlets may see their enterprise charges rise if they’re included within the Authorities’s new surtax for properties with a rateable worth over £500,000.
That is anticipated to cowl reductions for smaller high-street corporations, which will probably be topic to lowered enterprise charges beneath the Authorities’s plans.
The plans are set to be confirmed in subsequent month’s autumn Finances assertion and would come into impact from subsequent April.
Within the letter, the grocery store bosses say that their “means to soak up further prices is diminishing”.
It reads: “If the business faces larger taxes within the coming Finances – comparable to being included within the new surtax on enterprise charges – our means to ship worth for our clients will turn out to be much more difficult and will probably be households who inevitably really feel the influence.
“Given the prices at present falling on the business, together with from the final funds, excessive meals inflation is more likely to persist into 2026.
“This isn’t one thing that we’d wish to see extended by any measure within the Finances.
“Giant retail premises are a tiny proportion of all shops, but account for a 3rd of retail’s complete enterprise charges invoice that means one other vital rise may push meals inflation even larger.”
The letter concludes by asking Ms Reeves to “deal with retail’s disproportionate tax burden” which it stated would “ship a robust sign of help for the business and of the Authorities’s dedication to tackling meals inflation”.
Helen Dickinson, the BRC’s chief government, stated: “Supermarkets are doing every little thing attainable to maintain meals costs inexpensive, however it’s an uphill battle, with over £7 billion in further prices in 2025 alone.
“From larger nationwide insurance coverage contributions to new packaging taxes, the monetary pressure on the business is immense.”
The Treasury has been contacted for remark.
