{"id":971053,"date":"2025-11-19T20:27:06","date_gmt":"2025-11-19T20:27:06","guid":{"rendered":"https:\/\/ukpostcode.org\/content\/?p=971053"},"modified":"2025-11-19T20:27:06","modified_gmt":"2025-11-19T20:27:06","slug":"uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc","status":"publish","type":"post","link":"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/","title":{"rendered":"UK Retailers Warn Business Rates Hike Could Close Up to 400 Stores \u2014 BRC"},"content":{"rendered":"<p>.<\/p>\n<hr \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#_What_the_BRC_Is_Warning\" title=\"\u00a0What the BRC Is Warning\">\u00a0What the BRC Is Warning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#_Key_Comments_Demands\" title=\"\u00a0Key Comments &amp; Demands\">\u00a0Key Comments &amp; Demands<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#_Analysis_Implications\" title=\"\u00a0Analysis &amp; Implications\">\u00a0Analysis &amp; Implications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#_Case_Studies_Illustrative_Scenarios\" title=\"\u00a0Case Studies &amp; Illustrative Scenarios\">\u00a0Case Studies &amp; Illustrative Scenarios<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#Case_Study_1_A_Major_Supermarket_Chain_eg_Tesco_or_Sainsburys\" title=\"Case Study 1: A Major Supermarket Chain (e.g. Tesco or Sainsbury\u2019s)\">Case Study 1: A Major Supermarket Chain (e.g. Tesco or Sainsbury\u2019s)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#Case_Study_2_Department_Stores_Large_Retailers_eg_John_Lewis\" title=\"Case Study 2: Department Stores \/ Large Retailers (e.g. John Lewis)\">Case Study 2: Department Stores \/ Large Retailers (e.g. John Lewis)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#Case_Study_3_Impact_on_Local_Councils_Public_Revenue\" title=\"Case Study 3: Impact on Local Councils &amp; Public Revenue\">Case Study 3: Impact on Local Councils &amp; Public Revenue<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#_Key_Comments_Analysis\" title=\"\u00a0Key Comments &amp; Analysis\">\u00a0Key Comments &amp; Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ukpostcode.org\/content\/uk-retailers-warn-business-rates-hike-could-close-up-to-400-stores-brc\/#_Implications_Strategic_Risks\" title=\"\u00a0Implications &amp; Strategic Risks\">\u00a0Implications &amp; Strategic Risks<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"_What_the_BRC_Is_Warning\"><\/span>\u00a0What the BRC Is Warning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><strong>What the Proposal Is<\/strong>\n<ul>\n<li>The government is proposing a <strong>new, higher business rates (\u201csurtax\u201d) band<\/strong> for commercial properties with a <strong>rateable value over \u00a3500,000<\/strong>. (<a title=\"Up to 400 large UK stores at risk of closure from property tax hike, says BRC By Reuters\" href=\"https:\/\/www.investing.com\/news\/stock-market-news\/up-to-400-large-uk-stores-at-risk-of-closure-from-property-tax-hike-says-brc-4236263?utm_source=chatgpt.com\">Investing.com<\/a>)<\/li>\n<li>The rationale: use this additional revenue to <strong>fund a permanent discount<\/strong> for smaller retail, hospitality, and leisure premises. (<a title=\"Up to 400 large UK stores at risk of closure from property tax hike, says BRC By Reuters\" href=\"https:\/\/www.investing.com\/news\/stock-market-news\/up-to-400-large-uk-stores-at-risk-of-closure-from-property-tax-hike-says-brc-4236263?utm_source=chatgpt.com\">Investing.com<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Stores at Risk<\/strong>\n<ul>\n<li>According to BRC analysis, <strong>up to 400 large-format retail stores<\/strong> (supermarkets, department stores, etc.) could be at risk of closure if the surtax is applied to them. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>There are around <strong>4,000 large retail stores<\/strong> in the UK with a rateable value above \u00a3500,000. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>These large stores are \u201canchor\u201d retailers \u2014 they attract footfall, support surrounding smaller shops, caf\u00e9s, and other high-street businesses. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | The Standard\" href=\"https:\/\/www.standard.co.uk\/business\/business-news\/government-britain-budget-rachel-reeves-john-lewis-b1247332.html?utm_source=chatgpt.com\">The Standard<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Economic Impact<\/strong>\n<ul>\n<li>If up to 400 stores were to shut, the BRC estimates that <strong>up to 100,000 jobs<\/strong> could be lost. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>Local councils could lose <strong>well over \u00a3100 million annually<\/strong> in business-rates receipts from retail if these closures happen. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>Retail accounts for ~5% of UK economic output, but pays <strong>over 20%<\/strong> of all business rates, according to the BRC. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | Insider Media\" href=\"https:\/\/www.insidermedia.com\/news\/national\/400-of-britains-largest-shops-at-risk-industry-leaders-warn?utm_source=chatgpt.com\">Insider Media Ltd<\/a>)<\/li>\n<li>Large-format stores alone pay around a <strong>third<\/strong> of the total business rates bill for the retail sector. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | The Standard\" href=\"https:\/\/www.standard.co.uk\/business\/business-news\/government-britain-budget-rachel-reeves-john-lewis-b1247332.html?utm_source=chatgpt.com\">The Standard<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Why This Is Dangerous for High Streets<\/strong>\n<ul>\n<li>The BRC argues that these large stores are <em>vital anchors<\/em>. If they close, not only do the big shops suffer \u2014 high streets, shopping centres, and surrounding small businesses (caf\u00e9s, pubs, independents) could lose footfall. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | The Standard\" href=\"https:\/\/www.standard.co.uk\/business\/business-news\/government-britain-budget-rachel-reeves-john-lewis-b1247332.html?utm_source=chatgpt.com\">The Standard<\/a>)<\/li>\n<li>Because retail profit margins are very tight (e.g., <strong>2\u20134% for food retail<\/strong>), a big increase in business rates could force big shop owners into raising prices, cutting staff, or shutting outlets altogether. (<a title=\"400 UK stores may shut if large shops forced into higher tax band: BRC - Fibre2Fashion\" href=\"https:\/\/www.fibre2fashion.com\/news\/retail-industry\/400-uk-stores-may-shut-if-large-shops-forced-into-higher-tax-band-brc-305231-newsdetails.htm?utm_source=chatgpt.com\">Fibre2Fashion<\/a>)<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"_Key_Comments_Demands\"><\/span>\u00a0Key Comments &amp; Demands<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Helen Dickinson<\/strong>, Chief Executive of the BRC:<br \/>\n<blockquote><p>\u201cBritain\u2019s largest shops are magnets, pulling people into high streets \u2026 supporting thousands of surrounding caf\u00e9s, restaurants and smaller and independent shops.\u201d (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<br \/>\nShe warns: <strong>400 more large stores could disappear<\/strong> if they&#8217;re put into the new high tax band \u2014 which would mean up to 100,000 job losses, emptier high streets, and less revenue for the Exchequer. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | The Standard\" href=\"https:\/\/www.standard.co.uk\/business\/business-news\/government-britain-budget-rachel-reeves-john-lewis-b1247332.html?utm_source=chatgpt.com\">The Standard<\/a>)<br \/>\nHer ask: <em>exclude<\/em> these large shops from the new surtax band and instead slightly raise the rate on other big non-retail properties (like large office blocks), where closing them would have less economic damage. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<br \/>\nShe argues this could be done <strong>\u201cwithout cost to the Exchequer\u201d<\/strong> but would help secure the future of these 400 stores and the communities they support. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | The Standard\" href=\"https:\/\/www.standard.co.uk\/business\/business-news\/government-britain-budget-rachel-reeves-john-lewis-b1247332.html?utm_source=chatgpt.com\">The Standard<\/a>)<\/p><\/blockquote>\n<\/li>\n<li><strong>Industry Concern<\/strong>:\n<ul>\n<li>Retailers argue that shifting costs onto big shops is \u201cmassively damaging\u201d to high street ecosystems. (<a title=\"Up to 400 Large UK Stores at Risk of Closure from Property Tax Hike, Warns BRC - UK Estates\" href=\"https:\/\/ukestates.uk\/up-to-400-large-uk-stores-at-risk-of-closure-from-property-tax-hike-warns-brc\/?utm_source=chatgpt.com\">UK Estates<\/a>)<\/li>\n<li>There&#8217;s a risk of a <strong>domino effect<\/strong>: if anchor retailers close, smaller independent stores nearby could suffer from reduced foot traffic. (<a title=\"Business rates rise would put hundreds of big shops at risk, say UK retailers\" href=\"https:\/\/www.theguardian.com\/business\/2025\/sep\/12\/business-rates-rise-big-shops-risk-retailers-uk?utm_source=chatgpt.com\">The Guardian<\/a>)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"_Analysis_Implications\"><\/span>\u00a0Analysis &amp; Implications<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>High-street viability is at stake<\/strong>: This isn\u2019t just about big shops \u2014 it&#8217;s about the whole high-street ecosystem. Anchor stores draw people, which supports smaller businesses.<\/li>\n<li><strong>Job risk<\/strong>: 100,000 potential job losses is a major economic and social risk.<\/li>\n<li><strong>Long-term fiscal risk<\/strong>: If shops close, councils lose business rates revenue \u2014 meaning the government could ironically lose money in the long run.<\/li>\n<li><strong>Political leverage<\/strong>: The BRC is using this warning ahead of the <strong>Autumn Budget<\/strong>, putting pressure on policymakers to carve out an exception or reform.<\/li>\n<li><strong>Trade-off challenge<\/strong>: The government\u2019s proposal is to tax big commercial properties more to help smaller businesses \u2014 but retailers argue that the harm to big stores (and by extension, the high street) may outweigh the intended benefit.<\/li>\n<li>Here are <strong>case-style examples and commentary<\/strong> based on the BRC\u2019s warning that up to <strong>400 large UK stores<\/strong> could shut if a business rates hike goes ahead \u2014 plus the implications of their argument.<br \/>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"_Case_Studies_Illustrative_Scenarios\"><\/span>\u00a0Case Studies &amp; Illustrative Scenarios<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Case_Study_1_A_Major_Supermarket_Chain_eg_Tesco_or_Sainsburys\"><\/span><strong>Case Study 1: A Major Supermarket Chain (e.g. Tesco or Sainsbury\u2019s)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Situation<\/strong>: Some of these large-format supermarkets likely have rateable values above \u00a3500,000 \u2014 putting them in the proposed \u201csurtax\u201d band. (<a title=\"Up to 400 large UK stores at risk of closure from property tax hike, says BRC By Reuters\" href=\"https:\/\/www.investing.com\/news\/stock-market-news\/up-to-400-large-uk-stores-at-risk-of-closure-from-property-tax-hike-says-brc-4236263?utm_source=chatgpt.com\">Investing.com<\/a>)<\/li>\n<li><strong>Risk<\/strong>: According to the BRC, higher business rates could force them to:\n<ol>\n<li>Raise prices, squeezing consumers. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>Cut jobs to absorb costs. (<a title=\"400 of Britain\u2019s largest shops at risk - Business Money\" href=\"https:\/\/www.business-money.com\/announcements\/400-of-britains-largest-shops-at-risk\/?utm_source=chatgpt.com\">Business Money<\/a>)<\/li>\n<li>Close marginal stores that are no longer profitable. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | Insider Media\" href=\"https:\/\/www.insidermedia.com\/news\/national\/400-of-britains-largest-shops-at-risk-industry-leaders-warn?utm_source=chatgpt.com\">Insider Media Ltd<\/a>)<\/li>\n<\/ol>\n<\/li>\n<li><strong>Broader Impact<\/strong>: As anchor retailers, these supermarkets draw footfall to shopping areas. If they shrink or close, it could hurt nearby smaller shops, caf\u00e9s, and independents. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li><strong>BRC\u2019s Recommendation<\/strong>: Exclude these large stores from the new higher rate band, and instead raise rates slightly on other large non-retail buildings (e.g. office blocks) where the social and business risk is lower. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"Case_Study_2_Department_Stores_Large_Retailers_eg_John_Lewis\"><\/span><strong>Case Study 2: Department Stores \/ Large Retailers (e.g. John Lewis)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Situation<\/strong>: Department stores often operate on tight margins; the BRC says that many large-format stores already face \u201csoaring employment costs, high taxes, and rising rates bills.\u201d (<a title=\"400 of the UK's largest shops at risk, industry leaders warn | Financial News\" href=\"https:\/\/www.lse.co.uk\/news\/400-of-the-uks-largest-shops-at-risk-industry-leaders-warn-n44s7nbvuieibp7.html?utm_source=chatgpt.com\">London South East<\/a>)<\/li>\n<li><strong>Risk<\/strong>: The surcharge could push them to:\n<ul>\n<li>Scale back store footprint<\/li>\n<li>Reduce staff<\/li>\n<li>Possibly shutter some stores, especially those that are underperforming or in less busy locations<\/li>\n<\/ul>\n<\/li>\n<li><strong>Jobs Risk<\/strong>: The BRC estimates that <strong>up to 100,000 jobs<\/strong> could be lost if all the 400 \u201cat-risk\u201d stores close. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li><strong>Community Effect<\/strong>: Department stores play a key role in high streets and shopping centres. Their closure would likely weaken local economies, reduce footfall, and harm smaller neighbouring businesses. (<a title=\"High street crisis deepens with 400 of Britain\u2019s largest shops at risk of closure | The Independent\" href=\"https:\/\/www.independent.co.uk\/news\/business\/uk-store-closures-brc-business-rates-tax-b2824852.html?utm_source=chatgpt.com\">The Independent<\/a>)<\/li>\n<li><strong>BRC\u2019s Demand<\/strong>: Use the upcoming Autumn Budget to protect large retail properties from this surtax, arguing that exempting them would not cost the Treasury yet would maintain high street health. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"Case_Study_3_Impact_on_Local_Councils_Public_Revenue\"><\/span><strong>Case Study 3: Impact on Local Councils &amp; Public Revenue<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Situation<\/strong>: Local councils rely significantly on business rates paid by large retail stores.<\/li>\n<li><strong>Risk<\/strong>: If 400 large stores shut, BRC calculations suggest that local authorities could lose <strong>well over \u00a3100 million annually<\/strong> in business rates revenue. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li><strong>Broader Concern<\/strong>: Reduced revenue could weaken local public services, especially in areas already struggling with high street decline.<\/li>\n<li><strong>Policy Ask<\/strong>: The BRC argues that tax reform (excluding these big retailers from the surtax) is not just pro-retail but pro-communities and local government.<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"_Key_Comments_Analysis\"><\/span>\u00a0Key Comments &amp; Analysis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Helen Dickinson (BRC CEO)<\/strong>:<br \/>\n<blockquote><p>\u201cBritain\u2019s largest shops are magnets\u2026 pulling people into high streets, shopping centres \u2026 supporting thousands of surrounding caf\u00e9s, restaurants and smaller and independent shops.\u201d (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/p><\/blockquote>\n<ul>\n<li>She warns that <em>400 more large stores could disappear<\/em> if the surtax is applied. (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | Insider Media\" href=\"https:\/\/www.insidermedia.com\/news\/national\/400-of-britains-largest-shops-at-risk-industry-leaders-warn?utm_source=chatgpt.com\">Insider Media Ltd<\/a>)<\/li>\n<li>She argues that excluding large retailers from the surtax \u201cwould not cost the Exchequer a penny,\u201d but would protect jobs and the high street. (<a title=\"High street crisis deepens with 400 of Britain\u2019s largest shops at risk of closure | The Independent\" href=\"https:\/\/www.independent.co.uk\/news\/business\/uk-store-closures-brc-business-rates-tax-b2824852.html?utm_source=chatgpt.com\">The Independent<\/a>)<\/li>\n<li>She says failure to act risks \u201cshuttering hundreds more stores, costing jobs, communities, and the economy far more in the long run.\u201d (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | Insider Media\" href=\"https:\/\/www.insidermedia.com\/news\/national\/400-of-britains-largest-shops-at-risk-industry-leaders-warn?utm_source=chatgpt.com\">Insider Media Ltd<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>BRC\u2019s Broader Warning<\/strong>:\n<ul>\n<li>Retailers already pay a disproportionate share of business rates: large-format stores (rateable value &gt; \u00a3500,000) make up ~1\/3 of the retail sector\u2019s business rates bill, despite being a smaller fraction of total commerce. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>Over the past five years, according to BRC, <strong>1,000 large outlets have already closed<\/strong> \u2014 showing that these businesses are under real, sustained cost pressure. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<li>The BRC frames its ask not just as protecting retailers, but defending <em>anchor tenants<\/em> that support entire high-street ecosystems.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Economic Risk<\/strong>:\n<ul>\n<li>If 400 large stores close: ~100,000 jobs could be lost. (<a title=\"400 of Britain\u2019s largest shops at risk - Business Money\" href=\"https:\/\/www.business-money.com\/announcements\/400-of-britains-largest-shops-at-risk\/?utm_source=chatgpt.com\">Business Money<\/a>)<\/li>\n<li>Local councils would lose <strong>\u00a3100+ million\/year<\/strong> in business rates income. (<a title=\"400 of Britain\u2019s largest shops at risk - Business Money\" href=\"https:\/\/www.business-money.com\/announcements\/400-of-britains-largest-shops-at-risk\/?utm_source=chatgpt.com\">Business Money<\/a>)<\/li>\n<li>Higher business rates could lead to price increases, harming consumers \u2014 especially at a time when margins are tight across the retail sector (food retailers typically operate on 2\u20134% profit margins). (<a title=\"400 of Britain\u2019s largest shops at risk, industry leaders warn | Insider Media\" href=\"https:\/\/www.insidermedia.com\/news\/national\/400-of-britains-largest-shops-at-risk-industry-leaders-warn?utm_source=chatgpt.com\">Insider Media Ltd<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Policy Proposal<\/strong>:\n<ul>\n<li>Exclude \u201clarge-format\u201d retail stores from the new \u201chigher business rates\u201d band. (<a title=\"400 of Britain\u2019s largest shops at risk - Business Money\" href=\"https:\/\/www.business-money.com\/announcements\/400-of-britains-largest-shops-at-risk\/?utm_source=chatgpt.com\">Business Money<\/a>)<\/li>\n<li>Instead, increase rates modestly on other large non-retail commercial properties (offices, big non-retail buildings) where the economic and social cost is lower. (<a title=\"400 of Britain\u2019s largest shops at risk\" href=\"https:\/\/brc.org.uk\/news-and-events\/news\/corporate-affairs\/2025\/ungated\/400-of-britain-s-largest-shops-at-risk\/?utm_source=chatgpt.com\">brc.org.uk<\/a>)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"_Implications_Strategic_Risks\"><\/span>\u00a0Implications &amp; Strategic Risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>High-Street Decline<\/strong>: If anchor stores close, the high street could suffer a domino effect \u2014 reduced footfall, more vacant units, and a weaker ecosystem for smaller businesses.<\/li>\n<li><strong>Job Losses<\/strong>: Widespread closures could lead to significant unemployment in retail, hitting both national and local economies.<\/li>\n<li><strong>Political Pressure<\/strong>: The BRC\u2019s warning puts strong pressure on the government ahead of the Autumn Budget to defend large retailers.<\/li>\n<li><strong>Tax Trade-Off<\/strong>: The government\u2019s goal is to make a permanent business-rate cut for smaller retail\/hospitality premises \u2014 but shifting the burden onto large stores may backfire if it leads to widespread closures.<\/li>\n<li><strong>Long-Term Shift<\/strong>: Retailers may re-evaluate their brick-and-mortar strategy (store size, number of outlets) if cost structures become too risky.<\/li>\n<\/ul>\n<hr \/>\n<p>&nbsp;<\/li>\n<\/ul>\n<hr \/>\n<ul>\n<li><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>. \u00a0What the BRC Is Warning What the Proposal Is The government is proposing a new, higher business rates (\u201csurtax\u201d) band for commercial properties with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,6],"tags":[],"class_list":["post-971053","post","type-post","status-publish","format-standard","hentry","category-gb-news","category-uk-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK Retailers Warn Business Rates Hike Could Close Up to 400 Stores \u2014 BRC - UK News &amp; 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