RETAIL trade union Usdaw and supermarket Sainsbury’s join forces to call for business rates reform in an op-ed published today in The Times
The retailer and the union agree that the number one barrier to growth in the retail sector is the outmoded business rates system, and that, without fundamental reform, more stores will close.
Over the last 10 years, retail has been transformed, with the share of online sales tripling from 9% in 2012 to 27% in 2023. Yet, the business rates system has remained the same. Two-thirds of recently closed stores cite business rates as a key factor in forcing them to shut. The consultancy firm Development Economics carried out an independent survey and found that if nothing changed 17,000 shops would close by 2033.
Usdaw General Secretary Paddy Lillis says: “The current business rates system is not fit for purpose, as it places bricks and mortar retailers at a significant disadvantage to online retail. In effect, this amounts to nothing more than an unfair tax on shops, and action has to be taken to level the playing field. We were deeply disappointed that the previous Conservative Government rejected an online sales tax, which was also supported by major retailers and could have been used to fund a reduction in business rates.
“I wholeheartedly welcome the Labour Government’s manifesto commitment to level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship. Following its historic victory, the new Government now has an opportunity to deliver on this promise.
“Usdaw is calling for a robust plan for the future of retail work that addresses both the immediate and urgent priorities facing the industry and staff, as well as wider measures to help deliver better jobs. We need a coordinated and inclusive approach, so we are urging government, retailers and all key stakeholders to engage with Usdaw.
“Only by working together can we help to deliver the better jobs retail workers need and deserve, while securing the future viability of the industry for the benefit of customers, workers, communities and our economy.”
