of businesses affected by changes, say higher business rates have had a major or moderate impact on their operations.
Backing Britain’s high streets
On Tuesday 14 July 2026, the Real Rates Reform campaign launched, bringing together organisations from across the UK to champion a fairer business rates system and secure a stronger future for our high streets..
Britain’s high streets are places to shop, work, meet, eat, stay and experience culture. They support employment, provide vital local services and give towns and cities their individual character.
High streets are also changing. Between 2015 and 2024, retail employment on high streets fell by 19%, while employment in accommodation and food services increased by 18%. Together, these figures show how high streets are evolving into increasingly diverse destinations for retail, hospitality, leisure, culture and community life (Source: Office for National Statistics).
However, the system used to tax many of the businesses has not evolved at the same pace. This disconnect has real consequences, with businesses raising prices, reducing investment and cutting staff in response to rising business rates bills.
A Savanta poll of 1,000 UK businesses published in July 2026 highlights the growing economic impact of business rates and the reforms announced in the Budget on 26 November 2025 on our high streets, towns and city centres.
The impact:
of businesses are now concerned about the impact of business rates on their company's performance.
of medium and larger businesses have already increased prices for customers because of higher rates.
of businesses say their business rates bill has increased since April 2026.
Why this matters to our members
For businesses across the West End and central London, rising business rates continue to add pressure at a time when many are balancing increased operating costs and changing consumer behaviour.
This affects competitiveness, investment decisions and the ability to grow. It also has a direct impact on the vitality of high streets, commercial districts and the wider visitor economy.
Actions taken by businesses affected by higher business rates:
The Alliance
Heart of London Business Alliance (HOLBA) is a founding member of the Real Rates Reform Alliance with HOLBA chief executive Ros Morgan chairing the steering group. Working alongside partners across the UK, we help shape and support a practical, credible approach to long-term reform. Organisations can show their support by joining the Alliance.
Sign up to receive campaign updates and learn more about how to get involved.
What is the Alliance calling for?
The Alliance is calling on the Government to replace the current system with a new hybrid model that better reflects today’s economy.
The proposal would:
- Reduce the burden on bricks-and-mortar businesses
- Introduce a modest levy on online sales
- Rebalance taxation between physical and digital sectors
- Support high streets, communities and long-term investment
The current system was designed more than 30 years ago and no longer reflects how businesses operate. Retail and hospitality contribute around 34% of business rates but represent just 9% of the economy. In contrast, the digital economy accounts for around a fifth of activity while contributing significantly less.
“This is a pivotal moment for businesses across the UK. The evidence is clear. The current system is placing unsustainable pressure on businesses and holding back growth.
“By bringing together a powerful coalition of organisations, we are setting out a clear and credible path to reform. As part of the Alliance steering group, we are committed to working with Government to deliver a system that supports investment, protects places and reflects the realities of a modern economy.”
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