By GB News (World News) | Created at 2026-10-10 02:41:04 | Updated at 2026-10-10 03:43:35
1 hour ago
The chairman of John Lewis has issued a dire "warehouse tax" warning to Labour ahead of this month's Budget.
Shortly before becoming Prime Minister, Andy Burnham suggested an increase in business rates for warehouses and out-of-town retail developments could pay for tax breaks for high street shops.
Separately, the IPPR think tank proposed earlier this week a £1.5billion raid on online retailers, including Amazon, to support bricks-and-mortar businesses.
Supporters of a warehouse tax argue it would rebalance competition between high street shops, which pay high business rates, and online retailers operating on cheaper land.
But, writing in the Telegraph, John Lewis boss Jason Tarry argued the proposals were based on "a fundamental misunderstanding of how modern high streets work".
Mr Tarry described the UK's John Lewis stores and hundreds of Waitrose branches as "vital anchor tenants".
"They generate the primary footfall that sustains surrounding independent shops, pubs, bakeries and cafes," he said.
"Penalising anchor retailers through higher business rates risks harming the smaller businesses operating in their orbit."
Jason Tarry has warned that 'penalising anchor retailers' would also harm smaller businesses
GETTY
He also warned that when major retailers are "forced to balance the books", the most expensive operations - high street stores - will be impacted.
The John Lewis boss argued that if the Government adjusted property multipliers, it should exempt retail, hospitality, and leisure properties and instead target corporate offices.
He offered three ideas for a future Labour High Street Strategy, saying he could only reinvest into his company with a "predictable and coherent policy environment".
Mr Tarry said the Government should "reform the archaic business rates system so that it supports and incentivises businesses that are investing in their properties and rewards those that make an additive contribution to local civic life".
If major retailers are 'forced to balance the books', high street shops could be effected, Jason Tarry warned
PA
He also suggested the Government introduce a "modern digital tax-free shopping scheme for international visitors" to reclaim lost foreign revenue, and give Business Improvement Districts greater local responsibility for parking, transport and "public realm improvements".
Mr Tarry’s intervention comes as John Healey prepares to deliver his first Budget on October 28 against a challenging economic backdrop.
The chairman becomes the latest senior business figure to warn the Chancellor against hiking taxes on businesses.
Lord O'Neill, an influential economist and a former adviser to Mr Burnham, urged Mr Healey to rule out wealth taxes and higher business levies.
Shadow Chancellor Andrew Griffith, who was previously the Chief Operating Officer at Sky, also warned tax rises were destroying jobs.
He said: "The Chancellor should be spending every day working out how to cut taxes, not how to put them up."
Stuart Machin, the chief executive of Marks & Spencer, branded Labour's previous two budgets "disasters" and a "crushing disappointment".
The UK's second-richest man, David Reuben, recently relocated to Monaco.
