Retail Trade: Competition

(asked on 7th January 2026) - View Source

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the cumulative impact of business rates, employer National Insurance contributions, and wage regulation on the competitiveness of bricks-and-mortar retailers compared with online-only retailers.


Answered by
 Portrait
Baroness Lloyd of Effra
Baroness in Waiting (HM Household) (Whip)
This question was answered on 21st January 2026

Government works closely with the Retail Sector Council and industry bodies to help inform support for bricks and mortar businesses and ensuring a level playing field with online only retailers, including targeted reliefs and measures.

The government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £900 million per year, benefiting over 750,000 properties. To protect businesses from bill increases following the 2026 revaluation, a £4.3 billion support package is being implemented over three years.

Additionally, the retail sector will benefit from a rebalanced business rates system, with large distribution warehouses paying around £100 million more in 2026/27, with this funding directly lowering bills for in-person retail. The government has also launched a Small Business Plan aimed at removing barriers holding back businesses and breathing new life into high streets.

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