High Streets UK proposes Business Rates recommendations encouraging urgent action

Lobbying group High Streets UK has released a series of policy recommendations in response to the government’s Business Rates Discussion Paper in which it calls for “urgent action to avoid unintended consequences such as store closures and job losses”. The “pro-growth partnership” used insights from its over 5,000 associated UK businesses to inform the recommendations.

In a release detailing the requests, Dee Corsi, chair of High Streets UK and chief executive of founding member, New West End Company, said: “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.”

The recommendations specifically address the government’s proposed business rates reform, through which properties with a value of more than 500,000 pounds could be subject to a rates multiplier of up to 10 pence higher than the current levy. According to High Streets UK, this could result in a “disproportionate burden on physical flagship high street locations risking viability of properties” in certain areas”.

Calls for long-term assessment, freezing increases and extending empty property relief

The group is thus calling for the production of a comprehensive, long-term impact assessment of the multiplier increases on brick-and-mortar locations, including the potential impact on job growth and future investment. There is a further request to “fix the multipliers immediately” instead of increasing them annually in line with the consumer price index (CPI).

Further recommendations include freezing any increase on the incoming multiplier until 2027/2028; extending Empty Property Relief from three to six months, followed by a 50 percent discount thereafter; and building transitional relief for businesses that would be impacted by the higher business rates.

In a joint statement, the group said that while it welcomed the commitment to review and reform the business rates system, “current proposals, however, place too great a burden on flagship high street locations, from Birmingham and Bristol to Liverpool and London”. It continued: “The occupiers of city centre properties are often large retail, hospitality or leisure operators, or professional services businesses – drivers of footfall, significant employers and anchors for local communities.”