---
title: "Business Leaders Demand Urgent Reform of Rates System to Protect British High Streets"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-11-24T12:11:54+00:00"
modified: "2024-11-24T12:12:17+00:00"
date: 2024-11-24
canonical: "https://stockmark.it/business-leaders-demand-urgent-reform-of-rates-system-to-protect-british-high-streets/"
category: "Government"
categories: ["Government", "Retail"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/shopping-center.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Business Leaders Demand Urgent Reform of Rates System to Protect British High Streets

**Published:** November 24, 2024
**Author:** Stockmark.IT Website
**Categories:** Government, Retail
**Featured image:** ![Crowded, multi-level shopping mall decorated for Christmas. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/shopping-center.jpg?fit=1200%2C800&quality=89&ssl=1)

---

More than 80 prominent business leaders have intensified their campaign for immediate reform of the antiquated business rates system, warning the Treasury that swift action is essential to preserve Britain’s struggling high streets.

The current system, which traces its origins to the Poor Laws of 1601, is facing mounting criticism from retail and hospitality sectors, particularly in light of the recent budget announcements. Labour’s administration, under Sir Keir Starmer, has pledged to create a “fairer system” that safeguards high street businesses whilst promoting investment in a modern economy.

The urgency of this reform has been highlighted by the Commons business select committee’s decision to launch an inquiry into the “Great British high street” – identified as the primary concern among surveyed MPs. The retail sector, which contributes over one-third of all business rates while representing just 9% of the economy, is bearing a disproportionate burden under the existing framework.

Chancellor Rachel Reeves has outlined initial steps towards reform, announcing plans for two lower tax rates targeting retail, hospitality, and leisure properties with rateable values below £500,000, set to commence in 2026-27. The Treasury aims to fund these reductions through increased rates on larger properties, particularly targeting distribution warehouses utilised by major online retailers.

Industry leaders, however, remain sceptical about the proposed changes. The British Retail Consortium, representing the UK’s largest chains, argues that the reforms merely redistribute the burden within the sector rather than addressing fundamental inequities. Major retailers, including Tesco, John Lewis, and Next, have expressed concerns that the changes could adversely affect larger stores that serve as vital anchors for high street footfall.

With British high streets losing over 1,000 shops annually and projections suggesting a further 17,000 closures in the coming decade without intervention, the pressure for meaningful reform continues to mount. The retail sector’s call for a 20% reduction in rates bills through a “retail rates corrector” remains unanswered, highlighting the growing tension between government policy and industry needs.

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