Retailers are voicing strong concerns over a proposed warehouse tax aimed at funding business rate cuts for pubs and high street businesses. Proposed by Andy Burnham, the plan would increase rates on warehouses and large commercial sites to provide a 20 per cent reduction for pubs, clubs, and music venues.

Analysis suggests that even a doubling of the top rate on the approximately 1,900 large warehouses in England would not generate sufficient revenue. Experts warn that to meet the funding target, the government might expand the surcharge to 17,000 of the largest commercial properties, potentially impacting supermarkets and department stores, not just online retailers.

Retail leaders argue this approach risks a superficial fix, "rearranging the deckchairs" rather than addressing fundamental business rate issues. They fear that increased rates on large properties, including those owned by major retailers like Tesco and John Lewis, could fuel inflation due to thin operating margins and ultimately harm consumers. This move could also negatively affect the logistics hubs that underpin modern retail operations.