Pressure is mounting on the government to deliver meaningful reform of the UK’s business rates system, as concerns among firms reach record levels.
The British Chambers of Commerce (BCC) says anxiety around business rates has climbed to its highest point since it began tracking the issue in 2017. According to its latest Quarterly Economic Survey for the first quarter of 2026, 41% of businesses now cite rates as a major concern.
For many firms, the issue is no longer just frustration—it is affecting real business decisions.
Companies say rising business rates are contributing to higher prices for customers, while also forcing businesses to delay expansion plans or rethink investment in premises altogether. At a time when many firms are already facing pressure from labour, energy and financing costs, business rates are increasingly viewed as another barrier to growth.
Although the government introduced targeted relief measures earlier this year for sectors including pubs and live music venues, the BCC argues that the wider system remains fundamentally flawed.
Business groups are now calling for broader structural reform rather than temporary adjustments.
Kate Shoesmith, Director of Policy and Insights at the BCC, said the government had pledged major reform but had so far only “tinkered around the edges.” She warned that upcoming property revaluations in 2026 could trigger steep increases in bills for many businesses unless mitigating measures are introduced.
Among the proposals being pushed by the BCC are the introduction of a single flat-rate multiplier and a more comprehensive review of how business property taxation operates overall.
The organisation also believes there is scope for alternative approaches that could widen the tax base without increasing the burden on physical premises—particularly as businesses continue to adapt to changing consumer habits and the growth of online commerce.
For many firms, the debate goes beyond taxation alone. Business rates have long been criticised as a rigid system that can penalise investment in high streets, hospitality venues and physical locations while failing to reflect modern trading realities.
With concerns now at record levels, businesses are increasingly looking to the government not for short-term relief, but for a long-promised overhaul that could reshape how commercial property is taxed in the years ahead.
