Retailers said to have met ministers in plea to curb business rates

The bosses of John Lewis and Sainsbury’s have reportedly held secret talks with ministers calling on the government to curb the multi-billion pound cost of business rates.

According to Sky News, John Lewis Partnership chairman Charlie Mayfield, Sainsbury’s chief executive Mike Coupe and director general of the British Retail Consortium Helen Dickinson met the Treasury minister David Gauke last week to urge the government to restrict the tax burden on the industry.

The meeting is understood to have ended without any commitment from Gauke to re-examine the issue despite the BRC's disclosure of figures showing that retailers face an additional £14bn bill over five years from new policy announcements made since the general election.

Retail executives are furious that a Government commitment to devolve decision-making on business rates has not been accompanied by a full review of the system.

Tesco’s chief executive Dave Lewis said in a speech on Monday that business rates were "unsustainable and in need of urgent reform".

"Over the last five years property values have fallen, profits are down but business rates are up," he said.

"Business rates have hit £8bn for retail. That’s over a quarter of the bill and significantly more than any other sector."