British Retail Sector Boosted by Unexpected Business Rates Relief

Shares in major British retailers rose after the finance minister announced favorable business rates changes. The new policy offers permanent tax reductions for over 750,000 retail properties, but larger outlets face a surtax. Despite concerns, the industry saw a positive market response.

Shares in Britain's leading retailers saw an uptick on Wednesday following the announcement of revised commercial property taxes, or business rates, in Finance Minister Rachel Reeves' budget statement. The announced changes were less severe than anticipated, spurring investor confidence.

Reeves introduced more favorable tax conditions for over 750,000 retail, hospitality, and leisure properties, balanced by increased taxes on properties with a rateable value of 500,000 pounds or more. While larger retailers express concerns about potential adverse effects, the sector experienced notable gains.

The British Retail Consortium, representing major retailers, welcomed the permanent reduction in business rates but criticized the new surtax on larger retail premises. Despite the challenges, companies like Tesco and Sainsbury's benefited from the positive outlook, as did clothing and food retailers like Marks & Spencer.

(With inputs from agencies.)