Reeves urged to keep Labour promise on business rates

The chancellor, Rachel Reeves, has been urged to keep her promise to ease the pressure from business rates on high street businesses amid warnings of a looming £2.7bn tax hike that would mainly hit smaller retail, leisure and hospitality firms.

- Sarah Butler

More than 252,000 shops, cafes, pubs, restaurants and businesses are set to see a big step up in the property tax from April when a 75% relief up to a cap of £110,000 will end, according to analysis from the real estate intelligence firm the Altus Group.

Business rate payers across all property types and sectors will meanwhile share a £545m increase in the tax, according to Altus, based on the consumer prices index measure of inflation - £250m of which will be shouldered by the retail, leisure and hospitality sectors.

Andrew Goodacre, the chief executive of the British Independent Retailers Association, which works with more than 6,000 independent businesses of all sizes, said: "The chancellor has the power to extend the retail, hospitality and leisure relief, which is absolutely vital if high streets are to be revitalised and grow. We urge the government to consider this crucial support for the sector."