UK supermarket leaders urge exemption from business rates surtax to prevent food price hikes.

UK supermarket executives, representing major chains including Tesco, Sainsbury’s, and Aldi, have urged Chancellor Rachel Reeves to exempt large stores from a proposed business rates surtax targeting properties over £500,000. The British Retail Consortium led the call, warning the tax could worsen food inflation by increasing operating costs at a time when supermarkets face over £7 billion in additional expenses from national insurance and packaging taxes. Despite making up a small share of retail outlets, large stores pay a third of the sector’s business rates and say they can no longer absorb further increases. The surtax, expected in the autumn Budget and effective April 2026, could force price hikes, impacting households. The industry is calling for targeted relief to address its disproportionate tax burden and help stabilize food prices.