Carnage on the High Street forecast by leading agent

Thousands of businesses face 140% rises in rates bills when a new government policy takes effect in April.

That’s the stark warning from Colliers’ head of business rates, John Webber.

He says: “The Labour government’s business rates policies will soon put even further pressure on the high street as bills for the new rating year start to drop through the letterbox next month.”

According to Colliers, the government’s decision to cut the retail, hospitality and leisure business rates reliefs from 75% to 40% from April 1 will mean thousands of shops, restaurants, pubs, gyms and nightclubs will see business rates bills rise by 140% or more in the year ahead.

The Conservative government introduced the Retail, Hospitality and Leisure Relief Scheme in November 2022 to cushion the sector from high rates bills that many could not afford. The scheme provided eligible properties with 75% business rates relief up to a cash cap of £110,000 per business.

However, the new Labour Chancellor announced this would be reduced to 40% in the Autumn Statement last year.

This will affect different types of businesses in different ways.

Colliers has calculated this will mean that retailers currently benefiting from the relief will see their business rates bills increase in April on average from £3,751 a year to £9,003, and restaurants will see a rise on average from £5,563 to £13,351 a year. The average pub will also see its rates bill go up –from £4,017 to £9,642 a year.

Colliers says such rises will be unsustainable for many.

According to the Centre for Retal Research store closures in 2025 are forecast to be as high as 17,349 surpassing previous years – with business rates increases cited as the final blow to a sector already hit by increases in the employer national insurance contributions and increases in the minimum wage. Read the full article at Letting Agent Today