The high street had been left with was a promise of โjam tomorrowโ saying โwith around 27,000 high street jobs shed or at risk in the first 3 months of the year.
The Chancellor missed a golden opportunity not to reinstate the 75% business rates discount until the wider reforms come into effect in 2026.โ
The Chancellor will save ยฃ1.03 billion through the cut which comes into effect in less than a week and, from 2026, she will then be โrobbing Peter to pay Paulโ by transferring the burden for permanently lower tax rates for the high street onto the very largest ratepayers to save a further ยฃ1.4 billion.
It is estimated that Councils across England will raise ยฃ27.8 billion in business rates income for the new 2025/26 financial year up 5.7% from the ยฃ26.3 billion during 2024/25 with two thirds of that increase coming from the cut in the discount for retail, leisure and hospitality firms ย Ryan added.
Property taxes are devolved to Scotland, Wales and Northern Ireland.
The cutting of the business rates discounts for embattled high streets the length and breadth of England will cost an extra ยฃ1.03 billion in tax for retail, leisure and hospitality firms on 1stย April for 2025/26, with London hit the hardest, with the cut to the discount from 75% to 40% reducing the burden to the Chancellor from ยฃ2.41 billion to ยฃ1.38 billion according to analysis by ย the global tax and software firm Ryan.
Policy by the UK Government in terms of financial support for businesses England, such as business rates, result in additional Barnett consequentials for the devolved nations although the resultant money can be used for any devolved function.
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