The British Retail Consortium (BRC) has made a submission to the government, outlining recommendations for the upcoming Autumn Budget 2024.
The UK retail industry, which employs over 5.7 million people and contributes more than £100 billion annually to the country’s GDP, is seeking urgent reforms to unlock investment, support economic growth, and address challenges around sustainability and taxation.
Key concerns over business rates
The BRC highlights the disproportionate tax burden placed on the retail sector. Retailers pay 21% of business rates while only generating 7.4% of the UK’s economy, resulting in a tax bill of £33 billion annually.
This excessive tax load, including the high business rates, has contributed to the closure of 6,000 shops in the past five years. The BRC warns that without reform, a further 17,300 shops could close by 2034.
The retail body proposes a “Retail Rates Corrector” to adjust business rates by 20% for all retail properties.
This adjustment would help level the playing field and drive investment into higher-paid jobs, decarbonisation, and technological advancements that can enhance productivity.
Environmental and regulatory pressures
The submission also addresses growing regulatory costs, including the introduction of Extended Producer Responsibility (EPR) and the Deposit Return Scheme (DRS), which are expected to add £4 billion annually to retailer expenses.
While the retail industry supports the principles behind these schemes, there are concerns over the sequencing and cost-efficiency of their implementation.
The BRC has urged the government to work closely with businesses to ensure these policies achieve their environmental goals without placing undue financial strain on retailers.
The path forward
The BRC’s submission calls for collaboration between the government and retailers to deliver policies that drive investment, support decarbonisation, and improve productivity.
As retailers continue to face high inflation, increasing employment costs, and supply chain disruptions, the upcoming budget presents an opportunity to address these critical challenges and stimulate growth in the sector.
The Chancellor is expected to consider these recommendations as part of the wider strategy for supporting businesses and ensuring long-term economic stability in the UK.
