Business Rates to Spike by £1.66 Billion in 2024/25
On Monday, a wave of businesses—from bustling shops and lively pubs to sprawling offices, factories, and even schools and hospitals—will find their business rates invoices climbing by a staggering £1.66 billion. The shock factor? The government’s decision has had many experts waving their fingers in what they call an “anti‑growth” move.
Why the Greedy Tax Surge?
While small‑business rates stayed put at a 49.9p multiplier, the government fired up the standard multiplier—the one that applies to every non‑domestic property in England with a rateable value of £51,000 or more. The multiplier was hiked to reflect last September’s headline inflation, pushing the effective tax rate to 54.6% today.
“This is the biggest YoY jump to the standard multiplier since 1991,” quipped Alex Probyn, President of Property Tax at the Altus Group, Britain’s biggest ratings adviser. “And there’s no chance it’ll spark investment or growth!”
Who’ll Pay the Most?
- London & South East: Roughly 97,650 firms will shoulder half of the hike, paying an extra £823.95 million.
- Retailers: About 43,130 shops will see a pay‑check increase of £306.22 million—a sector already struggling after 16,170 job cuts this year.
Economic Context
The UK slid into recession in the second half of 2023, trimming 0.3% last quarter. Some experts are worried that this tax boost could push businesses into deeper waters during a fragile recovery.
Devolved Regions
Business rates are not a one‑size‑fits‑all nightmare—Scotland, Wales, and Northern Ireland have their own mechanisms.
Heads‑up! Keep an eye on how this shift impacts your local shop or office, and if you’re feeling the pinch, remember: there’s support out there—just don’t let the government’s numbers scare you off.
