Retail workers are cautioned against bearing the burden of business rate reforms, as emphasized by a joint plea from the shop workers union Usdaw and the British Retail Consortium. With nearly 3 million people employed in the retail sector in the UK, concerns arise due to the loss of 350,000 jobs over the past decade and the closure of over 10,000 shops in the previous year.

The Labour party has pledged to revamp business rates to revitalize high streets, proposing a permanent reduction for retail, hospitality, and leisure properties starting next year. The government is contemplating raising business rates for large non-domestic premises like office buildings and banks to finance these changes, prompting worries about potential adverse effects on larger retail establishments.

In a joint statement, Usdaw’s General Secretary, Joanne Thomas, and the British Retail Consortium’s Chief Executive, Helen Dickinson, highlighted the potential impact on supermarkets and anchor stores, which employ a significant portion of retail workers and draw customers to high streets. They emphasized the ripple effects of increased costs, including reduced employee hours, more closed shops, job losses, and ultimately higher prices for consumers.

The call is for the government to exclude shops from a higher business rates bracket and instead target larger office buildings and commercial properties for rate hikes. The focus is on preserving good jobs, supporting living standards, and fostering fairness in the Autumn Budget without disproportionately burdening retail workers.

In response, a Treasury spokesperson outlined plans for a fairer business rates system to safeguard the high street, encourage investment, and introduce permanently lower tax rates for retail, hospitality, and leisure properties from April. This sustainable funding model will involve a higher rate on a small percentage of the most valuable business properties, with no cash cap on the new lower tax rates and long-term strategies to support small business growth.