Retail Rejoice: Business Rates Shake-Up Sparks Market Optimism

Britain's major retailers saw share price gains after a budget announcement of lower business rates for 750,000 retail properties. However, larger retailers face higher costs due to a new surtax, sparking mixed reactions from industry leaders who fear impacts on investment and inflation.

Shares in Britain's leading retailers surged after finance minister Rachel Reeves unveiled changes to commercial property taxes that were less severe than expected.

The budget introduced permanent lower tax rates for over 750,000 retail, hospitality, and leisure properties while imposing higher rates on larger properties, stirring mixed responses.

Retail giant Tesco warned of inflationary pressures, whereas Sainsbury's CEO Simon Roberts praised the government's actions as attentive to industry concerns. Meanwhile, analysts predict varying impacts on different retail segments, with new taxes potentially adding to inflation challenges.

(With inputs from agencies.)