The FWD has put the wholesale channel’s business rates case to Andy Burnham, writing directly to the new Prime Minister on behalf of its members.
The association is looking to ensure that food and drink wholesale depots are excluded from any new warehouse business rates surcharge, with new proposals intended to support high streets, meaning many wholesale depots fall into the same “large warehouse” category as online retailers.
“Expected plans include slashing business rates for the hospitality sector by 20% – which are very welcome. Less welcome is the proposed way of paying for it: by increasing the rates on large, out-of-town warehouses,” said its chief executive, James Bielby.
Read more: FWD launches cross-sector food resilience commission
He explained that any policy aimed at taxing ‘warehouses’ must distinguish between the likes of Amazon and wholesale depots, stating that FWD members are b2b distributors supplying retailers, pubs, restaurants, cafés, schools, hospitals, care homes, prisons and other essential public services, therefore not retail warehouses.
“Business rates have already increased on members by between 25% and 30% over the past three years. The latest proposals could add a further 20% increase for many wholesalers,” he said.
“If wholesale depots are caught by these proposals, the impact will extend far beyond our sector. It will increase costs across the food supply chain, threaten jobs, reduce investment and ultimately push up prices for businesses and consumers alike.”
