Independent retailers across the UK are bracing for business rates increases of up to 15% next year, despite government assurances that its latest reforms would deliver the “lowest tax rates since 1991”, according to new warnings from the British Independent Retailers Association (Bira).

Bira says the reality of last week’s Budget falls far short of the “transformation” ministers promised, with most independent shops now facing noticeably higher bills in 2025–26 despite the introduction of lower multipliers.

Andrew Goodacre, CEO of Bira, said the government had used the latest revaluation to disguise what he described as “tinkering around the edges” rather than meaningful change.

“We were promised transformation, but what we’ve got is a system that will see most independent retailers paying 15% more in business rates next year – way above inflation,” he said. “Even with transitional relief and small business support, shop owners are facing substantial increases at a time when they’re already squeezed by rising wage costs and unfair competition from overseas sellers.”

Government proposals initially suggested multiplier reductions of up to 20p for properties with a rateable value below £51,000, and up to 10p for those above it. In reality, the reduction delivered amounted to just 5p.

Bira’s analysis shows that a typical independent shop with a rateable value rising from £30,000 to £39,000 will see its annual bill increase from £8,982 to £10,329 – a rise of £1,347, or 15% – even after applying the new “permanently lower” small business multiplier of 38.2p and transitional relief. A smaller shop with rateable values increasing from £15,000 to £20,000 will hit the minimum £800 cap, pushing bills from £4,491 to £5,291.

Mr Goodacre said the need for complex transitional reliefs “demonstrates that business rates still requires wholesale reform”, adding that the government had “taken advantage of the reassessment to deliver minimal real support while claiming to have transformed the system”.

Bira has now written to the Treasury with real-world examples of the impact on high street retailers, highlighting cases where independent shops face significant increases while some larger stores will actually see their bills fall.

“There are serious questions for the Valuation Office about how shops on the high street see their valuations soar while superstores on retail parks get lower valuations,” Goodacre added. “It doesn’t make sense and frankly feels like a betrayal of the government’s stated aim to support the high street.”

The rises coincide with other mounting financial pressures for small retailers, including the National Living Wage increasing to £12.71 from April and a four-year wait before the low-value import duty loophole closes in 2029.

“Independent retailers are facing a perfect storm,” Mr Goodacre warned. “Higher wage bills, business rates going up not down despite the promises, and another four years of being undercut by overseas sellers dodging duties and safety standards. This Budget was supposed to level the playing field. Instead, it’s made the pitch even more tilted against honest businesses on our high streets.”

Bira is urging the government to explain how the new system is intended to support independent retailers when most will face significant bill increases, and to accelerate the closure of the import duty loophole.

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