The British Chambers of Commerce is calling on the Government to rethink its plans for business rates.
In the Budget, Chancellor Rachel Reeves reduced business rate relief, in force since the pandemic, from 75 per cent to 40 per cent and said the discount would be scrapped from April.
Following intense pressure, the Government is expected to make a U-turn and change how pubs’ business rates are calculated.
But Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said: “Obviously the news on pubs is welcome, but there are many more businesses also in real need of a relief and a new approach.
“Most urgently there should be an uplift in the level of transitional relief to offset the huge upswing many businesses are facing in their rateable values from April.
“The Government must then deliver on the ambitious root and branch reform of the whole business rates system promised in their manifesto.
“This should include a move to annual revaluations, to remove the steep jumps in bills caused by longer gaps, and a single flat rate multiplier of 40p.
“These changes would provide much greater transparency, simplicity and fairness than the current complex, rigid system.”
In the British Chambers of Commerce’s Quarterly Economic Survey (QES) Q4 2025, a third of respondents (34%) said they were worried about business rates.
The organisation said it was the highest level since the BCC started asking the question in 2017.
Firms cite cost pressure from business rates as a key reason for increasing prices and delaying expansion of their premises.
While the Government has indicated it is considering a rethink on business rates for pubs, BCC research shows the disquiet being felt goes much wider.
The hospitality, manufacturing and logistics sectors face the highest levels of concern, but business size is also a factor, with anxiety over rates highest for firms with 10 to 49 employees (43%).
British Chambers of Commerce data from February 2024 found that 27% of surveyed businesses said they had scaled back or cancelled plans to upgrade or open premises as a direct result of business rates costs.
A survey from February 2025 reported that 23% of respondents said business rates had a direct impact on their prices.
Kate Shoesmith, director of policy and insights at the BCC, said: “The Chancellor recognised in the Autumn Budget that the current system for business rates is broken and holding back growth.
“But it is becoming increasingly clear that the changes she set out are not balanced and leave some sectors over-exposed.
“While news of a carve out for pubs is welcome, there are many other smaller hospitality companies facing an existential threat.
“Meanwhile at the other end of the scale, airports and hotel chains are expected to pay millions more.
“The last four years of Brexit, Covid, rising energy bills, wars and other geopolitical crises have pushed costs to record highs and these show no signs of waning.
“With new employment legislation coming down the tracks, a further inflation busting rise in the minimum wage and continuing global headwinds, the government must ease the burden.”
