A new lobbying group High Streets UK (HSUK) has proposed a raft of recommendations ahead of the Government’s proposed business rates reform, with a warning that flagship stores face becoming “unviable” due to the higher tax burden.
The lobbying group, which launched in January, describes itself as a pro-growth, nationwide partnership of businesses that aims to tackle the most pressing issues facing the UK’s flagship high streets and unlock local and national growth. It claims to already represent 5,000 businesses nationwide.
Its key recommendations include conducting a full assessment of the proposed multiplier increases and freezing any hike in the higher multiplier until 2027/28. Other recommendations include:
- Extend Empty Property Relief from three months to six months, followed by a 50% discount.
- Allow a portion of locally collected business rates to be retained and ring-fenced for investment in the corresponding flagship high street area, allowing those who pay the highest rates to see a positive impact on local services.
- Build in transitional relief for businesses that would be required to pay the higher multiplier post the 2026 revaluation.
Under the government’s proposals published in its Business Rates Discussion Paper, 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.
HSUK says, if introduced, the reforms would put a disproportionate burden on physical flagship high streets in major cities such as Bristol, Liverpool, London and Birmingham.
Dee Corsi, Chair of High Streets UK, 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. 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.”
On its website, HSUK states: “Across the country, high streets face 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 – and we believe that flagship high street destinations are perfectly placed to rise to the occasion.”
Founding members of HSUK include leading Business Improvement Districts from Birmingham, Bristol, Cardiff, Edinburgh, Liverpool, Leeds and London.