The UK government has outlined plans for a new business rates surtax on large retail properties as part of the Autumn Budget. Chancellor Rachel Reeves said the measure will apply to commercial sites with a rateable value above £500,000, affecting an estimated 4,000 large-format stores. The revenue will be redirected to offer business rate relief to smaller retailers, including independent greengrocers.
The British Retail Consortium warned that food inflation could remain above five per cent into 2026 and that higher costs could be passed on to consumers. Citing 2023 data from The Food Foundation, the organisation noted that the most deprived fifth of UK households would need to spend around 50 per cent of their disposable income to meet the government's recommended healthy diet.
Major UK retailers have recently posted strong financial results. Tesco forecasts operating profits above £3 billion, Sainsbury's expects around £1 billion, while Aldi has reported £18.1 billion in sales. Morrisons' profits have risen above £2 billion, and Lidl has also posted higher earnings. Guy Singh-Watson of Riverford said, "This is greedflation at its worst," arguing that growers face continued pressure along the supply chain.
Reeves said the surtax will come into force in April 2026. The Treasury has indicated that the measure responds to concerns about government support flowing to large retailers rather than smaller businesses. Campaign groups say the tax could serve as a model for further fiscal changes intended to support local food systems. Singh-Watson suggested that planning approvals for new supermarkets could require space for local farmers to sell produce.
According to the BRC, retail represents around five per cent of the economy, but ten supermarket chains account for 95 per cent of UK food sales. Debate over pricing practices continues, with some organisations describing recent price trends as "greedflation." A report by Unite cited a rise in combined profits at Tesco, Sainsbury's, and Asda to £3.2 billion between 2019 and 2021. Food manufacturers reported profits of £22.9 billion during the same period.
Foodrise said current ownership structures at UK supermarkets could hinder the aims of the National Food Strategy. Sunita Ramani of Foodrise stated, "The big supermarkets have a stranglehold over the whole grocery market in Britain." A YouGov survey commissioned by the charity reported that 54 per cent of respondents preferred supermarkets to operate as cooperatives or employee-owned businesses, compared with 16 per cent favouring private ownership.
Riverford's Get Fair About Farming campaign has drawn support from more than 113,000 people. A recent poll found that over two-thirds of farmers felt relationships with retailers had worsened over the past two years. Ramani said, "Over time, these big supermarket chains have become great marketing machines," adding that underlying operations remain focused on profit rather than grower returns.
Source: Wicked Leeks
