The Government is being urged to strengthen its changes to Business Rates this Winter, or risk creating unsustainable bills for high street and hospitality businesses. The call comes from two leading business organisations, Downtown in Business and Liverpool Business Improvement District. Between them, the organisations represent over 1400 businesses.

Business Rates bills will land at the end of the financial year and will include an existing retail, hospitality and leisure relief and the commitment to lower multipliers from 2026. Despite a climbdown announced on pubs, other hospitality venues will not be eligible. The government’s current plans do not include transitional protections and eligibility. This will lead to higher bills for hospitality and high-street businesses, with damaging consequences for city centres and local economies.

On average, Liverpool’s hospitality sector will see a projected 25% increase in Business Rates this year.

Frank McKenna, Chief Executive and Group Chair of Downtown in Business, says,

“It’s positive that the government recognises the pressure on hospitality and the high street. But recognition isn’t enough if the end result is that businesses still pay more.

Change must deliver real, practical relief — not net increases driven by revaluation, cliff edges or withdrawn support.”

Bill Addy, Chief Executive of Liverpool Business Improvement District adds,

“From a city-centre perspective, the risk is clear. If businesses face higher fixed costs, we will see closures, rising vacancies and declining footfall. After a year of seeing footfall return to pre Covid levels, this is a blow that could undo all of our hard work in recovery.

Business rates need a systemic change, which must actively support occupation and investment, or the progress made in many cities will be put at risk.”

Both organisations are calling on the government to deliver no net increase for hospitality and high-street businesses and to strengthen protections for operators most exposed to cost shocks.

The Liverpool Business Improvement District and Downtown in Business have also recently launched a national campaign, ‘Unlocking Britain’s Visitor Economy’, urging the government to adopt a pro-growth agenda for hospitality, retail, tourism, and city centre regeneration.