High street firms report growing concerns ahead of Budget amid calls for exemption from 'super tax' 

Ahead of tomorrow’s Budget, a "pro-growth" group representing the UK’s flagship high streets has revealed that business concerns have worsened since March, with more firms considering job cuts, closures and price increases.

New analysis from High Streets UK suggests that the "super tax" business rates higher multiplier - set to be decided on in Wednesday’s Budget - will cause more store closures, job losses and higher inflation than previously expected.

Properties set to be affected by the new "super tax" multiplier are those with a rateable value of over £500,000. High Streets UK argues that such properties are 5.1x more likely to be in a flagship high street than anywhere else - despite Government claims the proposal is aimed at online giants.

As a result, the group says that government plans to introduce the super tax add further pressure to an industry already grappling with higher National Insurance costs and the uplift in the National Living Wage, which it says have already driven up operating costs for businesses across the UK.

It comes as a new survey of retail, hospitality and leisure (RHL) businesses operating in flagship locations found that the introduction of the maximum proposed higher multiplier would put almost 6,000 jobs at risk, force 238 commercial units to close and increase prices by 3%.

The data indicates that nearly 76% of businesses (up from 69%) would seek to manage higher costs by cutting staff, putting 6,000 jobs at risk. Meanwhile, 70% (up from 64%) said they would need to pass on costs to consumers, driving estimated price increases of 3%.

Just over a third (36%) of affected businesses said they are considering closing certain locations, compared with 31% previously - putting 238 stores at risk of permanent closure.

Dee Corsi, Chair of High Streets UK, said: "Our research shows that the concerns of businesses have grown since March - after being hit hard with tax rises in April, with more punishing increases looming, their capacity to absorb further increases to operating costs has narrowed sharply.

"We have warned the Government that moving ahead with a new 'super tax' higher multiplier will be a disaster for jobs, investment and growth across the country, and a hammer blow to the high streets it is trying to protect.

"Far from targeting online giants, the 'super tax' is five times more likely to hit flagship anchor stores - the same businesses which drive footfall and spend for their smaller neighbours. It is an ineffectual way to drive growth, and it is working people who will suffer most."

High Streets UK is calling for the exemption of all retail, hospitality and leisure operators from the new multiplier and for a full impact assessment to be conducted before any further increases are introduced.

It also recommends freezing rises in the higher multiplier until 2027/28 to provide greater certainty for businesses. In addition, High Streets UK suggests ring-fencing rates for investment in key local high street areas, ensuring that those who pay the highest rates see a clear and direct benefit in local services.

The survey of 50 retail, leisure and hospitality businesses - representing over 2,000 trading units on flagship high streets - was carried out between 3 November 2025 and 18 November 2025.