Labour MPs warned ‘perfect storm’ of retail costs could benefit Reform UK

Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.

New analysis from the Retail Jobs Alliance (RJA) has revealed Labour holds 24 of the UK’s 30 constituencies with the highest numbers of voters working in retail, according to an Electoral Calculus survey in January 2025.

The study also found these are predominantly marginal seats where Reform UK came in second in the 2024 general election, and tend to be more deprived areas, the RJA said.

And the independent alliance of some of the most well known UK retailers including ASDA, Kingfisher, Marks and Spencer, Morrisons, Primark, Sainsbury’s and Tesco, warned proposed changes to the business rates system could penalise bricks and mortar retailers.

The RJA warned the government’s plans to reform business rates, published in October last year, which would see properties valued under £500,000 pay a lower rate from April 2026, would put a higher burden on those valued above that amount to fund this.

A RJA spokesperson said: “The government stood on a manifesto to reduce economic inactivity and protect our high streets. 

“The perfect storm of costs facing retailers including a higher rate multiplier for larger stores means that these commitments are in jeopardy.”

They added: “Shops up and down the country employ millions of people. In some communities, retail is the single largest private sector jobs creator. 

“These shops are also the heartbeat of our communities, providing public services and social hubs. 

“Without exemption for retail from the new higher rate threshold, high streets across the country face an increasingly bleak future.” 

Polly Billington, Labour MP for East Thanet said: “People’s enjoyment of our lovely seaside towns of Margate Broadstairs and Ramsgate includes enjoying our shops – the hardworking entrepreneurs and shop workers are the backbone of our local economy. 

“It is important to all of us in coastal communities that the retail sector is valued by the government at all levels and the path to good well paid work and a career in retail is also supported.”

When the government’s business rates policy was unveiled, Treasury exchequer secretary James Murrary said the system had been “working against our high streets for too long”.

He called the move a “major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed.”