Supermarkets warn shoppers could face higher prices if business rates rise

The UK's largest supermarkets are calling connected the chancellor to exclude stores from a caller concern rates surtax, informing that shoppers volition carnivore the brunt of higher prices.

Tesco, Sainsbury's, Marks & Spencer, Waitrose, Morrisons, Asda, Aldi and Lidl are among the stores that person signed a missive addressed to Rachel Reeves, arguing that easing taxes connected grocers would assistance curb nutrient inflation.

Industry radical the British Retail Consortium (BRC), which organised the letter, said ample shops could look higher concern rates if included successful the government's projected surtax connected properties valued astatine much than £500,000.

Smaller precocious thoroughfare firms are expected to payment from reduced concern rates nether the government's plans.

"If the manufacture faces higher taxes successful the coming Budget - specified arsenic being included successful the caller surtax connected concern rates - our quality to present worth for our customers volition go adjacent much challenging, and it volition beryllium households who inevitably consciousness the impact," the missive reads.

"Large retail premises are a tiny proportionality of each stores, yet relationship for a 3rd of retail's full concern rates measure - meaning different important emergence could propulsion nutrient ostentation adjacent higher."

The supermarkets are asking Ms Reeves to "address retail's disproportionate taxation burden", saying that doing truthful would "send a beardown awesome of enactment for the manufacture and of the government's committedness to tackling nutrient inflation".

The chancellor is wide expected to rise taxes aft bleak economical forecasts and a drawstring of reversals connected payment cuts, which person made it harder for her to instrumentality to her borrowing limits.

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Helen Dickinson, the BRC's main executive, said: "Supermarkets are doing everything imaginable to support nutrient prices affordable, but it's an uphill battle, with implicit £7 cardinal successful further costs successful 2025 alone.

"From higher nationalist security contributions to caller packaging taxes, the fiscal strain connected the manufacture is immense."

The Treasury has been contacted for comment.