Retailers weigh up 'mixed bag' but many are relieved over business rates

Retailers breathed a sigh of relief over changes to their business rates bills, which were not as bad as had been feared, after the industry had warned for months that more punitive measures could lead to shop closures and jobs losses.

- Sarah Butler Kalyeena Makortoff

The chancellor, Rachel Reeves, yesterday revealed plans to permanently reduce business rates for retail, hospitality and leisure properties - although the discounts are not as generous as those in place since the pandemic.

About 750,000 properties in those sectors will see their bills set below the current standard level, with deeper discounts for smaller operators, according to the government.

Businesses are still calculating their final bills, but the global tax firm Ryan calculated that there were 3,480 retail properties in England that had the higher rateable value and together would pay an extra £112m in business rates from April 2026.

However, the government is providing billions of pounds of “transitional relief” to help those whose bills will dramatically increase next year.

Jitters over the government's final decision had led the British Retail Consortium (BRC), which represents most major retailers, to warn in September that a major rise in bills could lead 400 big stores could close and put as many as 100,000 jobs at risk.

However, reacting to the budget yesterday, the chief executive of Sainsbury's said "industry concerns have been heard".