The chief of Morrisons has called for the business rates system to be radically overhauled so it “genuinely levels the playing field” between high street retailers and online operators.
Rami Baitiéh, the boss of the supermarket, told The Mail on Sunday: “The current proposal threatens to drag hundreds of supermarkets, which are crucial to thriving high streets, into even higher business rates.
“We urgently need a business rates system that is fair, proportionate and which genuinely levels the playing field between retailers and online operators.”
Chancellor Rachel Reeves announced a 40 per cent business rates relief for the retail and hospitality sectors in the Autumn Budget, but this is down from the current 75 per cent relief rate, which is set to expire on 31 March.
Reeves also announced plans to raise the amount the top one per cent of business properties pay in rates in order to enable a cut for smaller firms.
The British Retail Consortium (BRC) last week echoed Baitiéh’s comments, arguing the changes will “merely distribute rates within the industry” as opposed to bringing the overall burden down.
While Labour have promised to reform the entire system in 2026, there is concern that this will be too late for many businesses.
Alex Baldock, chief executive of electrical retailer Currys told The Mail on Sunday: “The rates relief proposed so far isn’t just too little, too late, but will actually leave many retailers worse off.”
The Treasury was contacted for comment.
Business rates are calculated by multiplying the rateable value of a property by the multiplier set by central government, which currently stands at 56.4p in the City.
A property’s rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market.
Business rates rise every year under a controversial multiplier rate. The small business rate multiplier has been frozen at 49.9p since 2019, but the standard business rate was unfrozen for the 2024/2025 financial year and rose to 54.6p.