{"id":114516,"date":"2025-10-26T11:00:00","date_gmt":"2025-10-26T11:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=114516"},"modified":"2025-10-26T10:50:39","modified_gmt":"2025-10-26T10:50:39","slug":"supermarket-alert-major-retailers-tax-rise","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/supermarket-alert-major-retailers-tax-rise\/","title":{"rendered":"Supermarket Alert: Major Retailers Say Tax Rise Will \u2018Inevitably\u2019 Hit Your Food Bill"},"content":{"rendered":"\n

Supermarket giants including Tesco<\/strong>, Sainsbury\u2019s<\/strong>, Aldi<\/strong>, and Morrisons<\/strong> are calling on the government to rethink plans for a new business rates surtax<\/strong>. In a joint letter to Chancellor Rachel Reeves<\/strong>, they caution that the proposed measure may directly lead to higher food prices for households<\/strong> across the UK.<\/p>\n\n\n\n

The intervention comes ahead of the Autumn Budget<\/strong>, where the Chancellor is expected to confirm details of the tax, targeting large commercial properties with rateable values above \u00a3500,000<\/strong>. Retailers argue the sector already shoulders a disproportionate tax load and warn that passing on further costs to customers is becoming unavoidable.<\/p>\n\n\n\n

Supermarkets Sound Alarm Over Rising Costs and Inflation Risks<\/strong><\/h2>\n\n\n\n

Nine of the UK\u2019s largest supermarket chains have jointly urged the Chancellor to reconsider a new surtax that could increase business rates<\/strong> for large retail premises. The warning, coordinated by the British Retail Consortium (<\/strong>BRC<\/strong><\/a>)<\/strong>, stresses that grocers are increasingly unable to absorb additional costs without affecting prices on shelves.<\/p>\n\n\n\n

\u201cGiven the costs currently falling on the industry, including from the last budget, high food inflation is likely to persist into 2026<\/strong>,\u201d the letter states, according to multiple reports. It was signed by senior executives from Tesco<\/a>, Asda, Aldi, Sainsbury\u2019s, Morrisons, Iceland, Lidl, Marks & Spencer, and Waitrose.<\/p>\n\n\n\n

While smaller high street businesses may benefit from rate relief under the new scheme, the grocers point out that large-format stores<\/strong> already account for roughly a third of retail\u2019s total business rates bill<\/strong>, despite being a \u201ctiny proportion\u201d of all premises.<\/p>\n\n\n\n

According to Helen Dickinson<\/strong>, chief executive of the BRC, supermarkets face over \u00a37 billion <\/strong>in additional costs next year alone. These include higher national insurance contributions<\/strong>, packaging taxes<\/strong>, and minimum wage increases<\/strong>. \u201cSupermarkets are doing everything possible to keep food prices affordable,\u201d she said, \u201cbut it\u2019s an uphill battle.\u201d<\/p>\n\n\n\n

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\ud83c\udf84 BRC-@OpiniumResearch<\/a> Consumer Sentiment \u2013 Oct 2025 \ud83c\udf84

Shoppers are getting ready for Christmas:
\ud83d\udecd\ufe0f Retail spend expectations +14 (\u2191 from +5)
\ud83d\udcb8 Overall spend +18 (\u2191 from +14)
\ud83d\udcb0 Savings -9 (\u2193 from 0)
\ud83d\udcc9 Personal finances -11 (\u2193 from -7)#Retail<\/a> pic.twitter.com\/tipHPcYQJd<\/a><\/p>— The British Retail Consortium (@the_brc) October 23, 2025<\/a><\/blockquote>