Here’s what the government should do to fix business rates

Businesses are calling for certainty. What they don’t need is a knee-jerk reaction on business rates from the government, writes David Jones

The current business tax rate is too high and Labour must address this issue proactively. The government is facing increasing pressure to make the right decisions, and these could provide critical relief to sectors like retail, hospitality and office rental markets. Starmer’s handling of business rates as a tax is extremely important.

In lead up to the 2026 business rates revaluation, our research forecasts a 14.7 per cent increase in the total rateable value (RV) pool in England, from £72bn in 2023 to £82.5bn in 2026. In Wales, we anticipate a 10.8 per cent increase over the same period, leading to a potential reduction in the Uniform Business Rate (UBR) from 51p to 43.8p in England and from 57.4p to 51.1p in Wales – showing the urgent need for government intervention as the revaluation approaches. 

The current situation was carried over from the previous government. The Conservatives halted the inexorable increase in business rates by freezing the UBR to offer some relief during the pandemic. In April 2023 significant changes were made for large businesses via in increase in the supplement by 6.7 per cent Consumer Price Index (CPI) inflation to create a standard multiplier. However, the underlying UBR has remained fixed at 49.9p for five years.

Read the full piece here in City AM.

David Jones
Principal and Managing Director, Business Rates
[email protected]