New “High‑Street Levy” Shakes Up the Nation’s Business Landscape
What the Government’s Budget Plan Is About
During last week’s Autumn Budget £2026’s big‑ticket item is a new tax levy aimed at nudging the balance of money between the bright‑glitter of high‑street shops and the buzzing online retailers.
The idea: give a tax break to smaller brick‑and‑mortar places (those with a rateable value under £500,000) by applying a lower multiplier to their business rates bills. But to keep the books balanced, the bill is lifted on the “big” ones – properties that fetch at least £500,000 in the market market’s rent estimation.
Why the Plan Has Raised Heads
While the goal is to level the playing field, the real‑world impact turns out to be a lot broader than the Tesco corridor imagined. The new levy isn’t just for Amazon’s warehouses; it spreads across a wide dark‑matter of non‑domestic properties.
- 1,589 warehouses now face the surcharge.
- 15,278 other business properties will see higher rates.
The Who’s Who of the Newly‑Taxed
Here’s a quick club list of some big names that either already carry the load or will have to start paying:
NHS Hospitals & Health Services
- Royal London Hospital
- Royal Devon Hospital
- Southmead Hospital, Bristol
- Leigh Infirmary, Lancashire (and dozens more)
Higher Education
- 310 universities
- 309 further education colleges
Police & Public Services
- 10 Metropolitan Police properties, including New Scotland Yard
- 200+ government buildings – from military barracks to prisons (yes, even HM Treasury on Horse Guards Road)
Private Schools & Education
- 295 private schools losing 80% charitable relief next year
Manufacturing & Industry
- Major car plants and other factories that claim business rates stunt their competitiveness
Altus Group Says It’s “Ill‑Thought‑Out”
Alex Probyn, President of Property Tax at Altus Group, calls the plan a classic case of policy pop‑cock: aiming to help the “kitchen‑set” while neglecting the fallout for the bread‑winning investors. His key points:
- Only 1% of England’s non‑domestic properties hit the high‑value cut, but they already pay £12.61 billion, stealing 48% of the expected £26.27 billion collection.
- Less than any direct levy to Amazon or other giants.
- Long‑term capital investment will feel the crack — creating a less attractive manufacturing hub.
Why Business Rates Are Still a Hot Topic
Business rates are devolved to Scotland, Wales, and Northern Ireland, but England’s local councils bear the brunt of collecting all that pound‑rage. The new levy moves the money around but leaves a pile of floating questions in its wake.
Bottom line: from 2026, a tidal wave of diverse institutions will be charged, leaving a curious mix of hospitals, universities, police, private schools, and factories all trying to keep their budgets afloat.
