How UK Business Rates Could Shape Malta’s Food Scene
The recent concerns raised by George Weston, CEO of Associated British Foods, about proposed changes to business rates in the UK highlight the potential challenges for larger stores that serve as anchors for high streets. While this issue is specific to the UK, it offers important lessons for Malta’s food, restaurant, and wellness industries. Larger businesses, much like high-end restaurants or key establishments in Malta, play a vital role in attracting foot traffic and supporting smaller surrounding businesses. Policies that disproportionately increase operational costs for these anchor businesses could disrupt the local ecosystem, impacting smaller enterprises and the broader economy. For Malta, maintaining a balanced approach to financial policies is essential to ensure the sustainability of both large and small businesses. Restaurants and food suppliers that prioritize local sourcing and sustainability not only drive economic growth but also promote health and well-being. Dining establishments serve as gathering spaces that foster social connections and contribute to mental health. Thoughtful policymaking that supports the entire business ecosystem will help Malta continue to thrive as a Mediterranean culinary destination, offering high
How Changes in Business Rates Could Impact the Food and Retail Scene: Lessons for Malta’s Dining and Lifestyle Industry
The conversation about supporting businesses isn’t just a UK issue—it has global implications, including for Malta's food, restaurant, and wellness industries. Recently, George Weston, CEO of Associated British Foods (ABF)—the parent company of retail giant Primark—voiced concerns about proposed changes to business rates in the UK. These changes, Weston argued, could place significant pressure on larger stores, which play a vital role in the vibrancy of high streets. While this debate is specific to the UK, it offers valuable lessons for Malta’s own business and lifestyle sectors, particularly when it comes to balancing financial policies with the sustainability of local businesses.
The UK Context: How Business Rates Affect High Streets
In a statement to the press, Weston emphasized that increasing taxes on businesses would hinder their ability to invest, expand, and create jobs. This comes at a time when UK Chancellor Rachel Reeves is tasked with addressing a significant financial deficit in the state’s finances—estimated at £40 billion. While the UK government has pledged not to increase taxes on individuals, there is growing concern that businesses, including those in retail and hospitality, could bear the brunt of the fiscal changes.
Currently, many UK businesses are already dealing with higher costs due to increases in national insurance contributions, the national minimum wage, and environmental levies such as the Extended Producer Responsibility (EPR) packaging tax. For large-format stores like Primark, additional taxes tied to business rates could lead to further financial strain. According to Weston, this is particularly troubling for large stores that serve as "anchors" for high streets, attracting footfall and supporting smaller surrounding businesses.
The British Retail Consortium (BRC) and other experts have echoed these concerns, warning that hundreds of large-format stores could be at risk. For instance, a forecast by global tax firm Ryan estimates that an upcoming surtax on properties with a rateable value over £500,000 could cost large shops an additional £45.8 million annually.
Malta’s Takeaway: Supporting Local Businesses for a Thriving Food and Lifestyle Scene
For Malta’s food, restaurant, and wellness industries, the UK’s experience serves as a cautionary tale. While Malta’s high streets and local businesses may not currently face the same level of taxation complexity, the principles remain relevant. Restaurants, cafés, and health-focused businesses are integral to Malta’s vibrant lifestyle scene and play a critical role in promoting community well-being. Much like large retail stores, these businesses act as “anchors,” drawing residents and tourists alike to local hubs and fostering economic growth.
If Malta were to implement policies that disproportionately affect larger or more established establishments, it could have a ripple effect on smaller businesses and the wider economy. For example, a high-end restaurant in Valletta or Sliema that attracts international tourists directly supports nearby cafés, artisan bakeries, and even local farmers supplying fresh produce. Any policy shifts that increase operational costs for these anchor businesses could disrupt this delicate ecosystem.
The Wellness Angle: Why This Matters for a Healthy Malta
The food and restaurant industry doesn’t just drive economic growth—it’s also central to promoting a healthy lifestyle. In Malta, where the Mediterranean diet is celebrated for its health benefits, maintaining a robust dining scene ensures access to fresh, nutritious, and locally sourced food. If business rate structures or other financial policies become burdensome, restaurants and food suppliers may struggle to prioritize sustainability, local sourcing, and health-focused menus.
Additionally, the mental health benefits of dining out or enjoying Malta’s culinary culture cannot be overstated. Restaurants are not just places to eat; they are gathering spaces that foster social connections, reduce stress, and enhance overall well-being. Protecting these spaces through supportive policies is essential for both economic and public health reasons.
A Balanced Approach: What Malta Can Learn
The UK government’s proposed changes aim to reduce rates for smaller high street businesses while increasing them for larger establishments. While this may seem like a fair redistribution, Weston argues that it unfairly penalizes the very businesses that sustain high streets. For Malta, the lesson is clear: a balanced approach is needed to ensure that financial policies support all businesses—large and small—without jeopardizing the sustainability of key players in the food and lifestyle industries.
Policymakers in Malta should consider how taxation, subsidies, and other fiscal measures affect the entire ecosystem of businesses. For example, targeted support for restaurants and food suppliers that prioritize local and sustainable practices could help promote health and longevity while boosting the economy. Similarly, ensuring that larger establishments remain viable will help maintain the foot traffic that benefits smaller businesses in the area.
Moving Forward
For Malta’s food, restaurant, and wellness sectors, the UK’s ongoing debate on business rates is a timely reminder of the importance of thoughtful policy-making. By learning from the challenges faced elsewhere, Malta can continue to build a thriving, health-conscious, and economically sustainable lifestyle scene that benefits both businesses and the community. After all, a healthy high street is the foundation of a healthy society—and that’s a goal worth investing in.