Bosses of the UK’s biggest supermarkets are urging the Chancellor to exempt shops from a new business rates surtax, warning that shoppers will bear the brunt of higher costs. A letter, organised by industry group the British Retail Consortium (BRC) and addressed to Rachel Reeves, argues that limiting the tax burden on grocers would help tackle food inflation.

It has been signed by UK executives and directors at Tesco , Sainsbury’s, Aldi, Asda, Iceland, Lidl, Marks & Spencer, Morrisons and Waitrose. The BRC said it is concerned that large shops could see their business rates rise if they are included in the Government’s new surtax for properties with a rateable value over £500,000.

This is expected to cover discounts for smaller high-street firms, which will be subject to reduced busine

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