Tesco Chief Executive Calls for Urgent Reform of Business Rates System Affecting Hospitality Sector

Ken Murphy, chief executive of Tesco plc, has publicly backed the hospitality sector in its ongoing dispute over Britain’s business rates framework. Speaking on 8 January 2026, Murphy articulated the supermarket chain’s position as an advocate for systemic reform that would establish fairer rates across the entire hospitality industry.

The intervention represents a significant statement from one of Britain’s largest retailers regarding what many stakeholders characterise as a fundamentally flawed system. Murphy’s remarks underscore growing concern within the business community about the structural inequities embedded within the current rates mechanism.

The business rates system has become an increasingly contentious issue for publicans and hospitality operators, who argue that the present framework imposes disproportionate financial burdens compared to other retail sectors. The call for reform reflects mounting pressure on the government to address what industry representatives describe as an unsustainable situation threatening the viability of numerous establishments.

Tesco’s public backing of reform efforts carries weight within policy circles, given the retailer’s substantial influence and market position. The company’s decision to align itself with hospitality sector concerns suggests that concerns about the rates system transcend individual sectors and reflect broader economic anxieties.

Murphy’s advocacy indicates that large corporations recognise the interconnected nature of Britain’s commercial landscape. The supermarket giant’s support for hospitality sector demands may signal shifting attitudes among major retailers toward collaborative approaches to addressing tax and rates policy.

The timing of these remarks coincides with reports suggesting government reconsideration of taxation policy affecting public houses. Political pressure continues to mount as industry representatives present evidence of closures and operational difficulties linked to current rates assessments.