John Lewis boss calls for business rates shake-up after ‘two-handed grip by Chancellor’

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

Nish Kankiwala said the group, which includes department store chain and supermarket chain Waitrose, faces “tens of millions” in additional costs as a result of the budget.

He highlighted the £25bn National Insurance tax raid on employers and the prospect of higher business rate bills.

“That seems to be, you know, a kind of two-handed grip, and that’s not helpful,” 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 increase in National Insurance will lead to store closures, job losses and higher prices.

The tax raid, which critics say breached Labour’s manifesto commitment not to increase National Insurance, came alongside a rise in the minimum wage to combat inflation and new rights for workers that will cost businesses £5bn per year.

Attention is now turning to the Government’s failure to deliver on its promise to “replace the business rates system” to “level the playing field between retail and the online giants”.

This has left businesses facing a sharp rise in business rates in April, plus other additional costs, with retailers bracing for a £140m rise.

Writing in the Mail yesterday, the head of the British Association of Independent Retailers said its 4,500 members, which include garden centres, DIY stores, furniture sellers and department stores, “are reeling from the upcoming rise in business rates.” .

Andrew Goodacre added: “We are calling on the Chancellor to reverse the increase – High Street shops can’t take any more.”

Speaking as his two-year term in charge of John Lewis nears the end, Kankiwala said: “If they could delay national insurance, but also if they could fundamentally propose radical business rates reform, I think that will make a huge difference.

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

Business rates are a local tax based on the value of a commercial property, meaning stores pay a premium compared to online giants like Amazon.

Well-known names from Marks & Spencer to Currys have criticized the system, calling it fit for purpose and at odds with the modern era.

But in the Budget, Reeves simply started a “conversation about how the Government can better 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 reduction” in business rates bills to help “offset” the £7bn of extra costs they face due to the national insurance tax. raid, minimum wage increase and packaging levies.

A Treasury spokesman said last night: “We have had to make difficult decisions to fix the country’s foundations and restore the economic stability we so need.”