House of Lords exempts major retailers from higher taxes

In a debate in the House of Lords, peers expressed strong opposition to the Chancellor's proposed changes to business rates, which would impact large retailers. They argued that raising rates on flagship stores like Marks & Spencer and John Lewis could threaten the survival of high streets. Baroness Scott warned that if costs continue to rise, fewer businesses will remain on the high streets. Peers voted in favor of an amendment to exempt major "anchor" stores from these higher rates, with the final tally being 283 in support and 177 against. Experts noted that retailers are already facing steep increases in costs, including higher National Insurance contributions and wage increases. Additionally, the British Retail Consortium reported a significant loss of retail jobs over the past five years. The government's business rates reform aims to balance the tax burden between physical stores and online retailers like Amazon. However, the changes could lead to increased bills for around 4,000 shops, possibly pushing them to relocate outside city centers. Baroness Scott and Lord Thurlow emphasized how losing major retail outlets could harm local communities and social cohesion. The Chancellor has postponed implementing a new business rates system until at least 2026, raising concerns over the future of high streets. Retail associations are calling for further assurances, stating no shop should pay more as a result of the reforms.