England’s Businesses Brace for a £1.1 Billion Blow‑up in Business Rates
Just when you thought the year’s been a bit of a roller‑coaster, the Global Payroll Association (GPA) has pulled back the curtain on a looming financial storm. According to their latest research, England’s companies will be on the hook for an extra £1.1 billion in business rates by the close of the 2024/25 fiscal year. That’s a 4.5% jump from last year’s total of £26.3 billion.
And it’s only the beginning of the listen‑up, because from April onward the Labour Chancellor’s “cost‑over‑haul” is going to fire up the price tags even more. Think higher business rates, a surge in employer NIC contributions, and a hike in the National Living Wage.
How the Numbers Stack Up
- The year‑end figure for 2024/25 will be £26.3 billion—up by £1.1 billion from 2023/24.
- Local authorities are feeling the heat in differing ways. Tower Hamlets is leading the pack.
Top‑Tier Tax Tiers
- Tower Hamlets (London) – £433.2 million for the year, up a staggering 28.9%.
- Watford – +27.6%.
- Worcester – +26.7%.
- Runnymede – +25.4%.
- Mole Valley – +25.2%.
- Bracknell Forest – +23.8%.
- Spelthorne – +22.1%.
- Broxbourne – +21%.
- Three Rivers – +20.7%.
- Stoke‑on‑Trent – +20.1%.
It’s a clear sign that businesses across England will need to tighten their belts; finance heads are already pulling up the charts. Stay tuned—next month, the cost‑over‑haul deepens, and every business is going to feel the pulse of those higher rates.
Worse is yet to come
Heads Up, Business Owners: The New Tax Turnpike Is Just the Beginning
In last month’s Autumn Budget, Chancellor Rachel Reeves threw a curveball: that beloved 75 % discount for retail, hospitality and leisure businesses will shrink to a 40 % relief from April 2025, capped at £110,000 cash. In plain English, most of you are looking at rates that could almost double. Add to that the hike in Employer National Insurance Contributions and the bump in the National Living Wage, and the 2025‑26 fiscal year feels like stepping into a storm‑filled canyon.
What’s the Real‑World Impact?
- Higher Rates – A huge, almost instant tax squeeze.
- Faster Cost‑Cuts – Payroll budgets will feel the pinch from day one.
- Job Cuts on the Horizon – The financial squeeze could force layoffs or even the shuttering of shops and inns.
- Profit‑Hampering Growth – If businesses can’t thrive, the economy’s path to growth shrinks, and jobs melt away.
Industry Voice: Melanie Pizzey, CEO, Global Payroll Association
“The soaring costs England’s businesses are about to face will hit working people hard. Planned raises will stall, bonuses may disappear, job prospects narrow, and, frankly, so will the number of jobs.”
“All of this is claimed to cut costs and buffer the government’s policies. But for many businesses, that’s only a lukewarm comfort; some may have to close forever.”
“How can the government claim to protect workers and spur growth when businesses are strapped and losing profit? The promise of ‘long‑term gain from short‑term pain’ offers little relief for those fighting to keep the lights on.”
Bottom Line
For most of England’s businesses, 2025‑26 will be a marathon run with fewer than the usual aid hurdles. The government’s plans may look grand on paper, but the reality will be very different – a battle against rising costs and shrinking margins. Keep your checklist updated, stay flexible, and hope the next year brings a few easing measures back into the mix.
