Thousands of high street businesses are set to see their rates bill more than double this year, financial experts warn.
According to Colliers, the Government’s decision to cut the retail, hospitality and leisure (RHL) business rates reliefs from 75% to 40% from 1 April will drive up rates bills by 140% or more this year.
Colliers has calculated this will mean that retailers currently benefiting from the relief will see their business rates bills increase on average from £3,751 a year to £9,003.
Restaurants and pubs will see a rise on average from £5,563 to £13,351 and £4,017 to £9,642 respectively.
Nightclubs will also be hit hard as their annual bills rise on average from £7,479 to £18,245, and gyms will see their bills rise on average from £2,942 to £7,060.
The Government has said it will help the RHL sectors by introducing a lower multiplier for those who have up to now received reliefs. However, this won’t be implemented until April 2026.
John Webber, head of business rates at Colliers, said: ‘The RHL sector has already been hit for six with the increases in employer national insurance contributions, increases in the minimum wage and increased inflation.
‘Many businesses are now considering their options, and some won’t survive. For the Government to add these extra business rates costs on top just now beggars belief.’
