Why the Chancellor’s Autumn Statement is a High Street Lifeline
John Webber, the brains behind Colliers’ Business Rates unit, has thrown a warning flag: if the Chancellor doesn’t freeze the business rates multiplier for every sort of shop, the patchy streets of the UK could face a financial earthquake.
What the Numbers Say
- Current multiplier: 51.2p per £1 of a property’s value (big shops) — 49.9p for small gigs.
- Rates rise perstep with inflation. The last CPI reading was 6.7%; predict next April? That’s a cost jump for everyone.
- Colliers’ estimate: £1.74 billion extra on all rates bills—with
£480 million extra for retail alone and a £234 million hike for hospitality.
How the Old Freeze Isn’t Enough
Last year, the government froze the multiplier across the board to give businesses a breather. Now, the Chancellor’s hints suggest the freeze might only cover the tiniest shops.
“If only the small guys get a stop‑right, the giants can still drive through the inflation traffic lane,” Webber warns. That’s a deal that could still lamour the High Street.
The Real‑World Drumbeat of Cost Hikes
- M&S could see £10 million more next year—spending rising from £2.66 million to £2.83 million.
- Selfridges up by over £0.55 million to £9.503 million.
- Primark in Birmingham will go from £681 k to £725 k.
Those numbers aren’t just figures—they’re wages for employees, rent costs, and the very survival of brick‑and‑mortar. A 6.7% bump could be the “last straw” for many, stifling expansion plans and possibly pushing chains from the brink.
Other Sectors Gutted Too
It’s not just storefronts. Colliers thinks logistics & manufacturing fire up by over £500 million next April, while offices face £401 million extra. Bureaucracy, delivery hubs, you name it: the spike’s everywhere.
We’re Not Just Crying for a Temporary Pause
Webber’s plea goes beyond freezing: actual reforms are overdue. They include:
- Re‑setting the multiplier to a more “business‑friendly” level, like 34p per £1.
- Rethinking the “sticking plaster” relief system so firms contribute fairly to their local amenities.
The call is simple: Stop shrinking the multiplier to a handful of tiny businesses while letting giants grow louder. Without it, the “Save the High Street” slogan will feel like a broken megaphone.
And What Now?
As the Autumn Statement kicks in, the Chancellor has a golden ticket to shield the entire spectrum of businesses. A blanket freeze and a real policy overhaul could transform the High Street from a paper-thin hope into a solid trunk of local commerce.
Let’s hope the government takes the leap, makes the changes, and keeps the streets humming. If they don’t, the story of high‑street woes will keep on unfolding—no less dramatic than a soap opera, but with real money on the line.
