High Streets UK launches punchy response to Government’s business rates reform

High Streets UK, the "pro-growth" partnership of more than 5,000 businesses across the country, has launched a series of forward thinking policy recommendations in response to the Government’s proposed business rates reform.

The aim is to drive growth and protect flagship high streets from becoming unviable due to high tax burden, a problem which has already seriously impacted so many of the UK’s main shopping areas.

The proposals, laid out at HSUK’s inaugural quarterly forum held in Liverpool last week - which come in response to the Government’s Business Rates Discussion Paper - include conducting a full impact assessment of proposed multiplier increases and freezing any hike in the higher multiplier until 2027/28.

Under the Government’s proposed business rates reform, properties with a rateable value of more than £500,000 could be subject to a business rates multiplier up to 10p higher than the current levy.

That would place a disproportionate burden on physical flagship high street locations, risking the viability of properties in areas like London, Birmingham, Liverpool and Bristol. The upcoming 2026 revaluation "adds further uncertainty, disincentivising near-term investment".

Other HSUK recommendations include:

• Ensure that a portion of locally collected rates is retained and ring-fenced for investment in the corresponding flagship high street area, so those who pay the highest rates see a positive impact on services on their doorstep.
• Extend Empty Property Relief from three months to six months, followed by a 50% discount thereafter. That would bring the relief more in line with the average time it takes for most retail units to find a new occupier (12-18 months, according to the British Property Federation), and encourage property owners to divert the capital otherwise spent on business rates liabilities into upgrading their properties.
• That relief should also be extended to listed buildings, of which there are a significant proportion in flagship high street locations
• Build in transitional relief for businesses that would be required to pay the higher multiplier post the 2026 revaluation.

Dee Corsi, Chair of High Streets UK and Chief Executive of Founding Member, New West End Company, said: "Flagship high streets are the economic and social anchors of our cities – they create jobs, drive local and national growth, and serve as vital hubs for communities.

"Moreover, within a high street ecosystem, it is often the larger retail, leisure and hospitality units which drive footfall and spend in smaller neighbouring businesses. If you put these larger stores at risk, the impact will be felt across the entire high street.

"As a collective voice for these high streets, High Streets UK is calling on the Government to take urgent action to safeguard their future, ensuring our city centres remain dynamic, competitive, and resilient."

Founding members of High Streets UK include business representatives from London, Birmingham, Liverpool, Leeds, Newcastle, Bristol, Edinburgh, Aberdeen and Cardiff.

Across the country, high streets are facing a wide range of challenges, from the rise of retail crime and anti-social behaviour to an "unwieldy business rates system" and rigid planning laws.

At the same time, the Government has clearly identified UK high streets as a vehicle to drive both national and local growth. The HSUK collective believes that flagship high street destinations are "perfectly placed to rise to the occasion".