High Streets UK says rising business rates will threaten 200 stores and 5,500 jobs

High Streets UK, the "pro-growth" partnership and lobbying group of more than 5,000 businesses across the country, has published a major new survey analysing the impact of rising business rates on stores, jobs, growth and investment in the UK.

It says the new tax burden will put over 600 high street stores in jeopardy, with more than 200 facing permanent closure – putting in the region of 5,500 jobs at risk.

The majority (64%) of affected businesses will need to pass on costs to consumers, with an estimated 3% increase on prices across retail, leisure and hospitality in the nation’s flagship high streets, including in London, Birmingham, Edinburgh, Leeds, Liverpool, Newcastle, Cardiff and Bristol.

The Government confirmed changes to employers’ National Insurance and the national minimum wage in the 2024 Autumn Budget, but the proposed creation of a new ‘super tax’ business rates multiplier is currently undergoing a consultation period. Properties set to be affected are those with a rateable value of over £500,000.

Properties subject to the higher new ‘super tax’ multiplier are 5.1x more likely to be on flagship high streets than anywhere else, "despite Government claims the proposals will target online giants".

The analysis also found that affected businesses in prime locations will face an overall increase of up to £69 million in business rates liabilities as a result of the proposed ‘super tax’ multiplier.

The new survey of 115 business operating on flagship high streets across the UK, carried out between 11-28 February 2025, has found that rising operational costs including set increases in employers’ National Insurance contributions (92%), a planned increase in the national minimum wage (79%), and business rates reforms which are currently being consulted on (81%), are the most pressing issues they face.

Dee Corsi, Chair of High Streets UK and Chief Executive of founding member, New West End Company, said: "We welcome the long overdue review of the current business rates system. However, current proposals place too great a burden on the UK’s flagship high streets, undercutting the Government’s national growth ambitions.

"Our survey of businesses up and down the country clearly shows that the plans would be a disaster for jobs, investment, growth and ultimately, lead to higher prices for consumers. We urge the Government to take on board our concerns and reconsider their proposed reforms to protect flagship high streets, attract inward investment, support growth, and create a fairer system for all."

Earlier this month, High Streets UK met in Liverpool for its first quarterly policy forum on business rates.

Key policy recommendations include conducting a full impact assessment of proposed multiplier increases, freezing any hike in the higher multiplier until 2027/28 to provide greater certainty, and ring-fencing rates for investment in flagship high street areas, so those who pay the highest rates see a positive impact on services on their doorstep.