Rachel Reeves is considering a shake-up of business rates for department stores, supermarkets, and those with larger premises. Tesco and Sainsbury’s have raised concerns over a potential £1.7bn tax raid on big shops, warning of a negative impact on the high street and potential price rises. Retail chiefs fear devastating blows to struggling town centers.

Ken Murphy of Tesco stated that the move could hinder investments in customers, colleagues, and communities, fueling fears of price rises and redundancies. The proposed reforms would increase business rates for department stores, supermarkets, and larger premises, potentially impacting town centers negatively.

Simon Roberts of Sainsbury’s predicted that major retailers may pull away from high streets to offset rising costs. The sector is also concerned about potential costs associated with Angela Rayner’s Employment Rights Bill. Opposition is mounting beyond grocers, with concerns about impacts on jobs and investment.

Retailers are currently facing a “perfect storm” of extra costs and red tape, which could lead to store closures and job losses. The overhaul of the business rates system is expected to harm employment opportunities for young people and impact communities across the UK. The Chancellor aims to address a £5bn hole in public finances through tax increases.

Efforts are being made to level the playing field by charging larger businesses more to reduce rates for smaller stores. The hospitality industry, especially pubs, is preparing for further financial strain. The impact of the proposed reforms will be felt across various sectors, with concerns raised about fairness and potential job losses. Ms. Reeves claims that “Britain is better off under Labour.”

Read more at Yahoo Finance: Supermarket bosses attack Reeves’s plan for fresh tax raid