Exclusive:​ BRC warns ‘no town or city centre safe’ with business rates poised to hit £7.6bn

Retail Week can reveal that according to data provided by real estate business Gerald Eve, the regions of England face an average increase of more than £50m for 2024/25 if the business multiplier rises at the anticipated 6.7%.

In terms of the increase in business rates by region, rates in London are expected to rise by £136.1m, while in the South East and the North West rates are set to increase by £74.7m and £55.9m respectively.

According to the BRC, without action from the chancellor, the rise is expected to equate to a total bill of £479m for the country’s retailers.

_{*Figures are an estimation of the rates payable, provided by Gerald Eve}

Chancellor Jeremy Hunt is understood to have “decided against freezing rates for larger retailers” as part of the autumn statement on November 22, according to The Sunday Times.

BRC chief executive Helen Dickinson warned the “additional burden” is likely to slow or prevent retailers from cutting prices and easing retail inflation.

She said: “Retailers in England already pay over £7.1bn a year in business rates and this will rise by a further £479m a year unless the chancellor takes action.

“Business rates are one of the most important factors considered when opening new stores, hiring new people and investing in our town and city centres. Raising business rates will undoubtedly block the vital investment the chancellor seeks, both now and in the future, which is why he must announce a freeze in the autumn statement.

“From Bournemouth to Berwick-upon-Tweed, no town or city centre in England is safe from the huge increase in business rates. Each region faces an average increase of more than £50m, taking the total bill in England to over £7.6bn. This must be paid whether a store makes a profit or loss, contributing to the loss of many beloved brands from our high streets and city centres.”

Gerald Eve business rates policy lead Jerry Schurder said: “Business rates in this country are already the highest comparable property tax in the world and the last thing hard-pressed retailers need is a further 6.7% increase.

“The government promised in its 2019 manifesto that it would ‘cut the burden of tax on business by reducing business rates’ and it is running out of time to deliver on this commitment.”