UK’s major business bodies to unite over business-rates system concern

Monday 1 December: We’re uniting industry leaders this week to demand urgent Government action to fix a system no longer fit for the modern economy. 

Changes to business rates multipliers announced in the 2025 Autumn Budget and a shrinking tax base are pushing the business rates system to breaking point. The emergency meeting will convene the UK’s major business bodies on 3 December following dramatic rises in rateable values and growing warnings that the business-rates system is spiralling into crisis. 

Across central London and other major commercial centres, businesses are reporting valuation increases of 200–300%, far beyond any credible real-world shift in property values. 

At the same time, the Government plans to increase total business-rates revenue from £34bn in 2025 to £37.4bn in 2026, despite the tax base shrinking as the digital economy — now more than 20% of UK GDP — contributes comparatively little to a property-based system. 

Recent evidence highlights the scale of the crisis: 

• A leading UK hotel group predicts a £40–50 million surge in its business-rates bill next year  
• Central London office liabilities are forecast to rise by around 38% from 2026/27 
• Analysts warn English businesses face a combined £2.5 billion increase next year 
• Research from the British Property Federation indicates the new regime could cost 22,000 skilled jobs nationwide. 
• Previous revaluations contributed to a sustained decline in licensed and hospitality premises. 

 Ros Morgan, Chief Executive, HOLBA said: 

 “The evidence is overwhelming. Businesses of every size and every sector are facing rates hikes that bear no relation to economic reality. A system designed for the 1990s cannot be relied upon to fund public services in 2025 and beyond. This is now a whole-economy crisis, and the Government must act before more businesses are forced to close.” 

“We have convened an emergency summit of the UK’s major business bodies to forge a single, uncompromising challenge to the current system and demand urgent structural reform. Tinkering with multipliers and reliefs is not reform. Only structural change will stop this escalating damage.”

Our Combined Business Rate (CBR) sets out a modern, sustainable alternative that reflects how the economy now creates value. 

Find out more below our campaign for Real Rates Reform.