Retailers and Union Warn Rate Hikes Threaten 90,000 Jobs

The Retail Jobs Alliance (RJA), supported by major retailers such as Asda, Kingfisher, Morrisons, Marks & Spencer, Primark, Sainsbury’s, and Tesco, has joined forces with the shopworkers’ union Usdaw to push back against planned increases in business rates for physical stores. Their warning stems from research indicating that existing financial pressures could eliminate up to 90,000 retail jobs by 2031 if no action is taken. The alliance specifically opposes the higher business rates multiplier introduced in last year’s Autumn Budget, arguing that further increases would worsen job losses and strain already tight budgets.

This call for exemption follows a Labour Party Conference motion, backed by Usdaw, which urged the Government to shield bricks-and-mortar retailers from the rate hike. On Tuesday, the Chancellor held pre-budget talks with executives from retail, hospitality, and leisure sectors, though no immediate concessions were announced. The RJA’s push comes as retailers face mounting costs, with higher business rates threatening their ability to maintain employment, upgrade stores, or keep prices stable for consumers.

According to WPI Strategy, which analyzed the data for the RJA, the current financial burden on retailers is unsustainable. Martin Beck, the firm’s chief economist, noted that businesses are already absorbing extra expenses, and further rate increases would force difficult choices between job cuts, reduced investments, and higher prices for shoppers. He stressed that the impact extends beyond retailers, affecting workers’ wages, local high streets, and household budgets through rising living costs.

Usdaw’s general secretary, Joanne Thomas, praised recent Government moves to lower business rates for pubs, clubs, and live music venues but called for a broader approach.