Tesco urges Healey to slash ‘fundamentally unfair’ business rates
The boss of Tesco has urged John Healey to reform the “fundamentally unfair” business rates system and avoid a so-called warehouse tax. Ken Murphy, chief executive of the UK’s biggest grocer, has become the latest retail industry figure to urge the Chancellor to cut taxes on high street businesses, as Andy Burnham pledges a revival [...]
Tesco's CEO, Ken Murphy, has implored Chancellor John Healey to overhaul the "fundamentally unfair" business rates system and eliminate a proposed warehouse tax, to prevent a rise in consumer prices. The retail titan joined a growing list of industry leaders urging the Chancellor to cut taxes on high street businesses as Labour pledges to revitalize town centres.
Prime Minister has reportedly been contemplating raising the highest business rates multiplier to fund tax cuts for pubs and smaller shops, but retailers have expressed concerns that higher taxes on warehouses would drive up prices for shoppers. Murphy recently told reporters that Tesco has consistently argued the rate system is "fundamentally unfair", alleging that retailers pay on average four times their fair share of rates.
The British Retail Consortium, representing major grocers, has urged Healey to lower the "punishing" tax burden faced by the industry, noting that retailers pay 72p in tax for every pound earned, making it the second-highest tax-paying sector. Despite recent profit growth, Tesco's like-for-like sales dipped slightly in the second quarter, and Murphy emphasized the company's commitment to providing the best value for customers, citing food inflation currently well below wage inflation.
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