UK Businesses on the Edge: The Chancellor’s Upcoming Decision Could Tip the Scale
Why the High Street Feels the Heat
Picture this: you walk into your local bakery, pop a latte on your smartwatch, and then sigh because the price has gone up. That’s not just coffee— it’s the business rates bill that’s been eating into local earners across the country. with the spring budget looming, a lot of the nation’s retailers and restaurants are clutching their wallets tighter than ever.
John Webber’s Love-Revealing Warning
John Webber, the chief rate‑watcher at Colliers, took to a press room with a bold call: “If the Chancellor doesn’t swoop in and stop the April rate hike, the High Street will feel the crunch even harder.” He’s not just waving a pencil— he’s pulling a heavy calculation sheet, showing that a 4% inflation rate is a far cry from the 6.7% balloon the Treasury tallied in November.
- Current plan: 51.2p to 54.6p per pound.
- If you’re a bigchain, that means a new tax load of £1.66 bn on all 220,000 merchants alike.
- Retail outlets alone will see an extra £360 million on the book.
- Offices: ~£400 million, and logistics & industry roughly £450 million.
Where the Numbers Hurt the Most
Large companies hold down more than 75% of the tax burden, and that’s an uncomfortable thought for the UK powerhouses who may soon sky‑rocket costs to consumers. The High Street, already under pressure, could face a taste‑unfriendly pizza of a slowdown, which would dampen the whole economy’s growth heartbeat.
A Mechanism That’s Running Out of Juice – The Multiplier
The Subterranean Bank’s Tool (UBR) is the engine for rate bills. While the government froze the small‑business multiplier and offered relief to tiny shops, the larger players still grapple with a rising multiplier that is set to climb from 51.2p to 54.6p. Today, that equals a rate that feels like a 99-year-old host offering a 2000‑year old discount. Nobody wants that.
The solution? Lower that multiplier to a fairer 34p—the very rate the old tax regime used back in 1990. By doing so, the government could get a new wave of investors to feel like they’re walking into a grocery store where the prices are actually affordable.
The Crunch and the “Relief” That’s Been Counterproductive
Relief schemes make relief‑friendly audible, but at the end of the day, the tax remains high. Over 700,000 of the 2.1 million business occupiers get a “no‑tax” pass, yet many are on the frontline of local services. “Everyone who benefits from the neighbourhood ought to tip in a fair way,” Webber insists. “No one should be taken for an extra fee in a pre‑heat barter.”
Each three‑year cycle should provide a check-in to make sure these reliefs still do what they were promised—only a shoring up of a service while the burden is kept behind the counter.
Calls to Extend Reliefs
“This temporary relief is basically a quick‑fix, but some folk need a longer spear‑point.”
For retail, hospitality, leisure 75% cuts are a lifeline, but they’re paused at next revaluation in 2026. The government’s task is to assure rest‑up‑rest of the price‑slippery line by:
- Keeping the 25% retail hi‑tax break for a whole year until 2026.
- Extending the empty‑property relief to a full 12 months for both offices and retail spaces.
- Eliminate the “Cowboy” effect that screws small shops. A register of professional advisory can cut down pretenders and robo‑problems.
What the Government Owns Is All Gone!
The Conservatives promised “real reform of business rates” in 2019, yet it appears the policies have slipped like a forget‑your‑keys‑at‑home bus. The tax burden is still hurting investment, while some Brits get reused as a second‑hand stupid tick‑box.
Webber remarks: “With the new Non‑Domestic Rating Act 2023, the “Duty to Notify” is getting more complicated. That’s something that can create a whole diaspora of up‑capped rogue advisers that take fees for nothing. We need a register of professional rating advisers.”
Do We Still Have a Chance?
We’re in the “last chance saloon,” and it could be the final 14‑year appeal. Time’s out, but the big question remains: will the Chancellor take a leap forward before the High Street goes down the rabbit hole or the UK turns into a less-visited playground? The wage‑pain is real, and the cost‑beaming bread, the mini‑environment we all root for is barely sustainable.
Get ready for the next big tangle.
Keep an eye on the budget – it’s happening soon. The public that’s being paid for by city services, the folks putting food on the table, and the everyday folks working from home will have to live or create a system that’s truly fair.
