Retailers warn Burnham warehouse tax rise could lift food prices
Retailers warn Prime Minister Andy Burnham that planned warehouse tax increases could push up food prices, noting that high street retailers occupied 97m sq ft of warehouse space in 2024. Online retailers accounted for 69m sq ft of warehouse space in 2024.
Analysis from consultancy Ryan identified the ten warehouses with the highest business rates bills as being run by Lidl, Tesco, John Lewis, Sainsbury’s, and Marks & Spencer. The British Retail Consortium said the retail sector makes up roughly five percent of the UK economy yet contributes about twenty percent of total business rates. In July, Burnham’s government said pubs, social clubs and live music venues in England will receive a twenty percent reduction in their business rates from April 2027, which it estimates will save the average pub around £1,100 per year.
“If they put it on, it’s going to be passed on,” James Bielby, chief executive of Food and Drink Wholesale UK said.
“A warehouse tax would add fuel to the fire, hitting the distribution hubs that keep our shops stocked, driving up prices and adding pressure to family budgets,” Helen Dickinson, chief executive of the British Retail Consortium said.
Burnham has previously supported higher business rates on warehouses and large out‑of‑town developments to help fund lower rates for pubs and selected high street businesses. The British Retail Consortium has urged Chancellor John Healey to freeze business rates, cut net zero levies and reduce employer National Insurance ahead of the 28 October Budget.
What we know
Retailers warned Prime Minister Andy Burnham that increasing taxes on large warehouses could push up food prices and add pressure to household budgets.
High street retailers occupied 97m sq ft of warehouse space in 2024.
Online retailers used 69m sq ft of warehouse space in 2024.
The ten warehouses facing the largest business rates bills are operated by Lidl, Tesco, John Lewis, Sainsbury’s, and Marks & Spencer.
The retail sector accounts for around five percent of the UK economy but pays approximately twenty percent of the country’s total business rates bill.