The decision to slash the retail, hospitality and leisure relief scheme from 75% to 40% is absolute madness. This change will lead to rates bills more than double overnight for 250,000 small businesses, which may result in significant business failures and job losses. Small businesses already endure the lingering effects of the long-term Covid lockdowns, decreased consumer spending, and a shift away from traditional retail, leaving them feeling deeply betrayed by the government's broken promises to support their sectors.
Increasing the UBR paid by larger properties by 1.7% to a striking 55.5% adds an extra cost of £444 million on 220,000 businesses. This move contradicts Labour's manifesto promise to 'level the playing field' between high street shops and online companies, highlighting a discrepancy between governmental aspirations and the reality faced by the retail, hospitality, and leisure industries.
After three years of Labour pledging to abolish and replace the business rates system—one of the highest taxes in the western world—this decision signifies further delays. Instead of decisive action, the government seems to engage in discussions that may only lead to minor adjustments, leaving the business community disheartened and unrewarded for their patience.
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