Retail Chiefs Meet Chancellor Over Business Rates, Costs
Chancellor John Healey will meet executives from major UK retailers and hospitality businesses next week, ahead of the Autumn Budget. They aim to address concerns over potential increases in business rates and rising employment costs.
Scheduled for October 13, the meeting occurs 15 days before Healey’s first major fiscal statement. Invited executives represent Sainsbury’s, Marks & Spencer, and Tesco.
Discussions will center on the retail, hospitality, and leisure sectors, along with small businesses and the high street. The government faces pressure to lower business costs.
Retailers fear Healey might raise the business rates multiplier for larger outlets, exacerbating challenges from higher employment costs. At the Labour Party conference, he pledged to tackle both the cost of living and the cost of doing business in the Budget.
This meeting follows warnings from the Retail Jobs Alliance (RJA), which includes M&S, Tesco, and Sainsbury’s. The RJA argues that higher business rates for larger stores could drive up prices and jeopardize high street investment.
In September, the group urged the government to exempt all physical retailers from the highest business rates multiplier, currently at 50.8p. They assert retailers should not shoulder a higher tax burden to fund reductions for pubs, clubs, and live music venues.
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Retailers highlight a looming tax burden. The British Retail Consortium found the sector faced an effective tax rate of 71.5% in 2025/26, the highest among 11 analyzed sectors. Retail businesses paid £39.1 billion in business taxes that year, including business rates and employer National Insurance contributions.
Youth unemployment will also be discussed, following commitments from retailers like Asda, Boots, and John Lewis to create 100,000 new jobs. The initiative has support from Costa Coffee, Currys, and other major supermarkets.
Businesses warn that hundreds of thousands of youth jobs could be at risk unless employer National Insurance costs are reduced. Retail and hospitality groups have consistently called for measures to alleviate business costs ahead of the Budget.
Healey also met with banking executives earlier this week to discuss the economy. The banking sector expects potential tax increases in the Budget.
The Treasury declined to comment.
