Autumn Budget means there will be a 140% tax rise for 250,000 high street firms next April – London Business News | Londonlovesbusiness.com

The reduction of the business rates discount for retail, hospitality and leisure firms in England from 75% to 40% from 1^st April for the 2025/26 financial year will mean an average 140% rise in business rates bills for more than 250,000 high street premises in England next April, experts have today warned.

According to the commercial real estate intelligence firm Altus Group, the average shop will now see its business rates bill spiral from £3,589 to £8,613 next April for 2025/26.

Whilst the average business rates bill for pubs will increase from £3,938 to £9451. Restaurants will see their average bill rising from £5,051 to £12,122.

The 75% discount was only a one-year commitment to be applied for 12 months from 1^st April 2024 and is set to expire on 31st March 2025 with Altus Group forecasting the cost of that discount at £2.41 billion.

The Chancellor has said that she will now deliver a fairer business rates system through permanently lower business rates multipliers for retail, hospitality and leisure properties but not until 2026/27 whilst providing a lower discount of 40% for the 2025/26 financial year as an interim measure.

Altus added that 252,414 eligible properties such as shops, restaurants, pubs, cafes, hotels and the like currently receive the 75% discount and will now see large increases in their bills as a result of the much lower discount.

Alex Probyn, President of Property Tax at Altus Group, said “despite Labour’s manifesto recognition of the undue burden business rates place on our high streets, this Budget actually increases that burden by £688 million for those types of business for next year in the short term.”

Business rates are devolved to Scotland, Wales and Northern Ireland.