Proposed Business Rates reform could “discentivise” investment

Liverpool has hosted the first quarterly forum of a new partnership representing over 5,000 businesses from the UK’s high streets. High Streets UK has released a series of policy recommendations in response to the Government’s Business Rates Discussion Paper. The group’s asks are informed by insights from its hundreds of member businesses operating on flagship high streets nationwide.

Under the Government’s proposed business rates reform, properties with a rateable value of more than £500,000 could be subject to a business rates multiplier up to 10p higher than the current levy. This would place a disproportionate burden on physical flagship high street locations risking the viability of properties in areas like Birmingham, Bristol, Liverpool, and London. The upcoming 2026 revaluation adds further uncertainty, disincentivising near-term investment.

High Streets UK is calling on the Government to take urgent action to avoid unintended consequences such as store closures and job losses. Key recommendations include conducting a full impact assessment of proposed multiplier increases and freezing any hike in the higher multiplier until 2027/28 to provide greater certainty.

Liverpool is one of the founding members of High Streets UK, and Liverpool BID Company represents the interests of over 800 businesses in Liverpool city centre.

Jennina O’Neill is Chair of Liverpool BID Company’s Retail & Leisure BID and is Centre Manager at Metquarter

“We do need to have a sensible and focused conversation on the impact of business rates on our high streets. It feels as though we have been saying ‘This is a challenging time’ since 2020, but that shouldn’t distract from the sense of crisis among many of our retail and hospitality partners and clients. There is a triple threat of National Insurance, Business Rates changes and inflation. This is going to hit workers and it is going to hit shoppers. Flexibility in working and part-time shifts are going to be hit by the lack of affordability in the hiring market. That’s going to hit young people and it’s going to hit women returning to work after starting a family. Higher prices are going to hit the economy and drive up inflation even further.”

Dee Corsi, Chair of High Streets UK and Chief Executive of Founding Member, New West End Company, commented:

“Flagship high streets are the economic and social anchors of our cities – they create jobs, drive local and national growth, and serve as vital hubs for communities. Moreover, within a high street ecosystem, it is often the larger retail, leisure and hospitality units which drive footfall and spend in smaller neighbouring businesses. If you put these larger stores at risk, the impact will be felt across the entire high street.”

“As a collective voice for these high streets, High Streets UK is calling on the Government to take urgent action to safeguard their future, ensuring our city centres remain dynamic, competitive, and resilient.”

Read more and find our policy recommendations here