High Streets UK Warns of Business Rates Impact on Retail and Jobs
High Streets UK has issued a warning about the government’s proposed business rates reform, highlighting the risk of store closures and job losses. The lobbying group, representing over 5,000 businesses, argues that increasing the rates multiplier for properties valued above £500,000 could harm flagship high streets.
Impact on Local Businesses and High Streets
Flagship high streets drive economic growth, create jobs, and support communities. Dee Corsi, chair of High Streets UK and CEO of New West End Company, stated that larger businesses in retail, hospitality, and leisure attract footfall and support smaller businesses. Higher business rates could threaten their viability, affecting the entire high street ecosystem.
Key Recommendations for Business Rates Reform
High Streets UK has proposed several measures to prevent financial strain on businesses:
- Immediate rate freeze: Avoiding annual increases linked to the Consumer Price Index (CPI).
- Postponement until 2027/2028: Delaying the new multiplier to give businesses stability.
- Extended Empty Property Relief: Increasing the relief period from three to six months with a 50% discount afterward.
- Transitional relief: Easing the financial impact of higher business rates.
Call for Government Action
The group welcomed the government’s commitment to reviewing business rates but warned that the current proposals could disproportionately impact high street businesses in cities like London, Liverpool, Birmingham, and Bristol. Large retail and hospitality operators drive footfall and employment, making their survival essential for economic stability.
High Streets UK urges policymakers to consider long-term consequences before implementing reforms.