High‑Street Hardship: Why Your Local Shop is About to Pay Twice as Much
Picture this: you stroll down your favourite main street, grinning at the aroma of freshly brewed coffee and the gentle hum of a well‑kept shop. Then you’re hit by a cruel twist of fate: your business rates bill suddenly doubles. That’s exactly what 250,000+ retailers, cafés, pubs, and restaurants in England are in for. From April 2025, the promotional 75% discount that was supposed to give them a break fades away, replaced by a much smaller 40% cut for the 2025/26 fiscal year.
How the Numbers Break Down (and Break Your Budget)
- Shops: From £3,589 to a staggering £8,613.
- Pubs: A jump from £3,938 to £9,451.
- Restaurants: A climb from £5,051 to a hefty £12,122.
In plain English, that’s a 140%. The drop in discount is like a dress rehearsal that turns into a full‑blown reality show.
Why the Fade‑out of the 75% Discount Matters
That generous discount was only a one‑year pilot—beginning 1 April 2024 and ending precisely on 31 March 2025. The estimated bite it took out of the economy was already a £2.41 billion deal. Now, instead of a big swing in that relief, the government is offering a “temporary” 40% cut, while promising a permanent multiplier tweak. But that tweak isn’t slated until the 2026/27 season.
Tax Tells All
Altus Group’s own Alex Probyn, the king of property tax, is no fan of this pivot. He quipped, “Labour said the Loan Surprises are a serious smudge on the high street, but this Budget actually ups the load by £688 million for those same businesses next year.” Oh, the drama!
What the Numbers Mean for You
With 252,414 properties counting on the old generous discount, the short-term top‑up will hit their forecasts. If you’re a shop owner, stay sharp: maybe open a pop‑up café, or get a sharper big‑screen TV if you want to say goodbye to the 75% date. The high street’s future feels a bit like an old sitcom that keeps rewinding—except it’s always the same old cliffhanger.
—Remember, you’re not alone. If you’re part of this new wait‑list of “reduced” homes, the busy line is getting taller.
