Retailers warn a possible warehouse tax could raise shop prices, as chains may pass the cost to customers. Labour has signalled an “Amazon tax” to help fund tax cuts for high-street businesses; retailers fear the Chancellor may target warehouses in his Budget.
Savills analysis found high-street retailers occupied 97 million sq ft of warehouse space in 2024, compared with 69 million sq ft used by online retailers. Ryan’s analysis found the 10 warehouses with the country’s largest business-rates bills are owned by Lidl, Tesco, John Lewis, Sainsbury’s and Marks & Spencer.
The British Retail Consortium says retail accounts for 5% of the economy but pays 20% of the business-rates bill. It urged the Chancellor to freeze business rates, cut net-zero levies and reduce National Insurance for businesses. A Treasury spokesman said tax decisions would be set out at fiscal events and declined to comment on speculation.
