Report: Business rates increases could put at risk over 600 high street units

A new report by High Streets UK, a lobbying group established by the New West End Company (NWEC), has said that the incoming increase to business rates could put over 600 trading units on flagship UK high streets at risk, with over 200 facing permanent closure. The data was collected from a survey of 115 high street businesses, which cited rising operational costs as the most pressing issue they face.

This particularly pertains to changes announced as part of the government’s Autumn Statement, in which it was stated that from April employers would be subject to an increase in national insurance contributions, an increase in the national minimum wage and reforms among business rates.

The latter is currently in consultation, however, the House of Lords has now opted to remove key provisions from the reform plans targeting properties with a rateable value of more than 500,000 pounds, which would have been subject to a business rates multiplier of up to 10 pence higher than the current levy from April 2026. The vote means that manufacturing sites, flagship stores and healthcare businesses will be excluded from this change.

Businesses reassessing costs to threaten 5,500 jobs

According to High Streets UK survey, the majority of businesses that could be impacted by the new higher multiplier will look to manage costs by reviewing staff, potentially threatening up to 5,500 jobs in high street locations. Around 64 percent of businesses said they would consider passing additional costs onto consumers, meaning prices would need to rise by around 3 percent to offset increased tax burdens.

Further efforts cited by a third of surveyed businesses include potentially reviewing investment strategies in the UK or closing certain locations as a result, putting at risk 600 units and resulting in the possible closure of over 200 more.

In a release, Dee Corsi, chair of High Streets UK and CEO of NWEC, said that while the group welcomes the “long overdue review of the current business rates system”, current proposals place “too great a burden on the UK’s flagship high streets”. Corsi continued: “Our survey of businesses up and down the country clearly shows that the plans would be a disaster for jobs, investment, growth and ultimately, lead to higher prices for consumers. We urge the government to take on board our concerns and reconsider their proposed reforms to protect flagship high streets, attract inward investment, support growth, and create a fairer system for all.”

According to the Labour Government, current proposals intend to target online giants, however, High Streets UK said the multiplier is 5.1 times more likely to impact properties on flagship high streets like Birmingham and Liverpool. The organisation has already shared its own alternative proposals in response to the government’s, in which it is calling for the freezing of any increase in higher multiplier until at least 2027 and the conducting of a full impact assessment of proposed multiplier increases.