The letter sets out concerns that the Government’s proposed changes to business rates from 2026 could:
• Negatively impact the jobs market. Recent analysis for the RJA highlights how as many as 300,000 people could leave the retail sector by 2028.
• Accelerate the decline of high streets, reducing footfall for surrounding businesses and creating a cycle of economic downturn.
• Reduce local authority revenues, as empty retail spaces contribute less in tax and weaken the broader economic fabric of towns and cities.
• Undermine the Government’s plans to help reduce economic inactivity, as struggling high streets in lower-income areas would be hit hardest.
Paddy Lillis – Usdaw general secretary says: “The current business rates system is not fit for purpose, as it places bricks-and-mortar retailers at a significant disadvantage to online retail. In effect, this amounts to nothing more than an unfair tax on shops.
“The retail sector was already struggling before the pandemic and the cost of living crisis made matters much worse. Last year, nearly 120,000 retail jobs were lost and over 10,000 stores closed. Every job lost is a personal tragedy for the worker and their family; store closures are scarring our high streets and communities. We need action to help save our shops and retail jobs.
“We welcome the Chancellor’s commitment to transforming business rates, after a number of missed opportunities by the previous Government. It is good news that the current proposals include some targeted support for retail, but we are concerned that the introduction of a higher multiplier will not help to level the playing field between online and bricks-and-mortar retailers.”
Notes for editors:
Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk
The Retail Jobs Alliance is a coalition of retailers and representative bodies including: Usdaw, British Retail Consortium, Asda, Kingfisher, Marks & Spencer, Morrisons, Primark, Sainsbury’s, and Tesco www.protectretailjobs.com
For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion