Peter Ruis, the outgoing boss of John Lewis, has voiced concerns that an increase in business rates, as potentially planned for an upcoming budget, would significantly harm the High Street and the broader economy. Ruis warned that such a move could "rob youngsters of job opportunities," as customers are increasingly worried about their children's inability to find employment.
Ruis described the current economic climate as a "perma-crisis," noting that while consumers still possess disposable income, the economic environment is challenging. He highlighted a significant drop in graduate job availability, with estimates suggesting a decline from 60,000-70,000 positions a few years ago to around 10,500 currently. This trend, he observed, causes parents in their 40s and 50s to worry about their children remaining at home due to a lack of employment.
Approximately one million individuals between the ages of 16 and 24 are currently classified as 'Neets' – not in education, employment, or training. Retailers are apprehensive that the government might increase business rates for larger retailers, including stores like John Lewis, to subsidize lower rates for establishments such as pubs and music venues.
Mike Ashley, the billionaire owner of Sports Direct, has previously stated that the government would be "delusional" to impose further pressure on major retailers. Several prominent retail chains have expressed fears that a business rates increase could escalate living costs and negatively impact jobs and investment.
Retailers contend that they should not face increased rates, particularly expressing concern that rates for large stores with a rateable value of £500,000 or more might be raised. Ruis, whose tenure at the 162-year-old retailer concludes this week, asserted that a hike in business rates would have a "terrible impact" on all retailers. He pointed out that smaller stores, which would not be directly affected by such an increase, still oppose it because they rely on the foot traffic generated by larger anchor stores like John Lewis.
"John Lewis is the anchor to pretty much everywhere we are, and people drive into that town to visit us and then visit everyone else, so it's really critical that that doesn't happen," Ruis said. He believes that retailers are well-positioned to employ young people but require more flexibility to do so. Ruis also suggested that reforming business rates would enable businesses to hire more graduates and expressed that a thriving retail and hospitality sector can be a strong indicator of economic growth.