"Small businesses such as cafes, shops and hairdressers are facing three years of business rates misery with an average 52 per cent hike in bills being piled on in three instalments, new analysis from the Federation of Small Businesses (FSB) has revealed. The controversial slashing of relief for 230,000 small firms across the retail, hospitality and leisure (RHL) sectors in England, combined with other business rates changes being introduced by the Government from this April, leaves many having to pay thousands of pounds extra."
"As part of the Government's changes to the business rates formula, it allowed itself the potential to reduce the multiplier - which is used to calculate bills - by 20p for small RHL businesses. Yet ministers are only reducing it by 5p, despite it coming at the same time as other rising cost pressures - from energy standing charges to employment costs. Raising it to 20p would bring the relief back in line with the previous 40 per cent discount."
The Federation of Small Businesses (FSB) analysis finds an average 52% increase in business rates for small retail, hospitality and leisure firms across three years, applied in three instalments. The loss of a previous 40% discount for 230,000 small firms, combined with revaluation of rateable values and formula changes, drives the rise. An illustrative small shop with a rateable value rising from £16,000 to £19,104 would see its bill increase from £4,790.40 in 2025/26 to £7,297.73 by 2028/29. The Government permitted a potential 20p multiplier cut but is applying only a 5p reduction instead of restoring equivalent relief.
Read at London Business News | Londonlovesbusiness.com
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