NEWS

Government must fix ‘broken business rates’

The government must take the chance to fix the UK’s broken business rates system, says the British Chambers of Commerce (BCC).

The business group says anxiety about business rates rose to 41% in its Quarterly Economic Survey for the first quarter of 2026.

This is the highest level since the BCC started asking the question in 2017.

Companies cite cost pressure from business rates as a key reason for increasing prices and delaying expansion of their premises. 

While the government made some concessions on business rates for pubs and live music venues earlier this year, BCC research shows business concerns are much wider. 

Kate Shoesmith, Director of Policy and Insights at the BCC, said: 

‘Reforming business rates was a key manifesto pledge of the government, but it has only tinkered around the edges.

‘The government must deliver the more ambitious root and branch reform of the whole system that it promised. 

‘As first steps, it should mitigate the steep jumps in bills across all sectors caused by the 2026 revaluation and introduce a single flat rate multiplier.

‘This shift should then jumpstart a more rigorous consultation with business on how to fully reform what is a complex and rigid system.

‘They are ready to contribute innovative thinking on change without costing the Exchequer. There are other tax mechanisms that can meet the goal of widening the tax base to allow for a lower multiplier.’

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20/05/2026