John Lewis boss calls for a shake-up of business rates after ‘two-handed grab by the Chancellor’

The outgoing boss of John Lewis has called for a “radical” shake-up of the UK’s business rates system, following a “two-handed grab” of private businesses by the Chancellor.

Nish Kankiwala said the group, which also includes department store chain and Waitrose supermarket chain, would face “tens of millions” of extra costs as a result of the budget.

He highlighted the £25 billion tax bill on employers and the prospect of higher business rates bills.

“That seems, you know, like a two-handed grip, and that doesn’t help,” Kankiwala told the Financial Times.

Rachel Reeves has faced a furious backlash since the Budget, with more than 80 leading retailers signing a letter this week warning that the rise in National Insurance will lead to store closures, job losses and higher prices.

The tax raid, which critics say broke Labour’s pledge not to increase national insurance, was accompanied by an inflation-busting rise in the minimum wage and new rights for workers, which will cost businesses £5 billion a year.

Attention now shifts to the government’s failure to deliver on its promise to ‘replace the business rates system’ to ‘level the playing field between the high street and the online giants’.

That has led to businesses facing a sharp rise in business rates in April, on top of other additional costs, with retailers bracing for a £140 million increase.

The boss of the British Independent Retailers Association wrote in the Mail yesterday that its 4,500 members, including garden centres, DIY stores, furniture retailers and department stores, are ‘reeling from the coming rise in business rates’.

Andrew Goodacre added: ‘We are calling on the Chancellor to reverse the increase – High Street shops cannot cope with more.’

As his two-year term in charge of John Lewis came to an end, Kankiwala said: “If they could delay national insurance, but also if they could fundamentally deliver radical reform of business rates, I think it would have a huge impact on the economy. difference.

‘Not only for small and medium-sized businesses, but I think for retail in general. It’s very important.’

Business rates are a local levy based on the value of commercial property, meaning shops pay a premium compared to online giants such as Amazon.

Well-known names from Marks & Spencer to Currys have spoken out against the system, calling it unfit for purpose and inconsistent with modern times.

But in the budget, Reeves simply launched a “conversation about how the government can best deliver a fairer system.” This included lower bills – but not until 2026.

In their letter to the Chancellor this week – signatories also included Boots, Greggs and B&Q – retail bosses called for a ‘permanent cut’ in business rates to cover the £7 billion in extra costs they face from the National Insurance Tax to ‘compensate’. raids, higher minimum wages and levies on packaging.

A Treasury spokesman said last night: ‘We had to make difficult choices to rebuild the country’s foundations and restore much-needed economic stability.’