Sir Terry Leahy of Tesco has called on the government to change the way business rates are calculated to ease the burden on retailers, arguing that the system hits them unfairly because of their large store portfolios.

The chief executive of Britain’s biggest supermarket chain complained that retailers were 'being particularly hard hit' by business rates because the sector was dependent on property.

Speaking at a property conference yesterday, he urged the government to take measures to 'ensure a fairer spread of tax liability across business sectors'.

Business rates have become a sore point for many property-owning companies, which fear bills could soar just as the economic downturn means many will be seeking to cut costs.

Sir Terry, echoing wider voices in the property and retail industry, asked the government to cut the uniform business rate multiplier for 2009-10, postpone the 2010 revaluation of business property and, in the longer run, review business rates more generally.

Financial Times