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Why are Sainsbury’s and Tesco calling on Reeves to make a fresh U-turn on tax?
The Independent
|July 21, 2025
Rachel Reeves is facing a fresh rebellion, but this time, the opposition is coming from Britain’s biggest supermarkets, not the Labour back benches.
Tesco and Sainsbury’s have joined forces with pubs, restaurants and other hospitality businesses to warn the chancellor against a planned £1.7bn tax raid on the industry.
The Independent looks at what the businesses are worried about, and whether their warnings are likely to be heeded.
What is the tax raid?
The grocery giants’ intervention focuses on the chancellor’s plans to overhaul the business rates system. Changes outlined by Ms Reeves in her Budget last October will lead to higher payments for department stores, big supermarkets and other businesses with larger sites.
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