REEVES’ “Lowest tax rates since 1991 challenge as analysis shows many high street properties will pay more
Chancellor Rachel Reeves’ Acknowledging that the autumn budget brings the lowest prices since 19950,000, it is said that travelers after the analysis of the teachings revealed that most of the restrictions on the high streets will face the levels of repetition of high businesses next year.
Reeves told MPs he was introducing the lowest tax rates in three decades, using the phrase “tax rates” in the plural. However, the claim completely prevents the new multipliers of 38.2p for retail, hospitality and leisure (RHL) with a higher value between $12,000 and £51,000 not what it will pay.
Treasury documents confirm that any RHL property that does not receive transitional relief will face a 1P surcharge, raising the effective price for thousands of small sites to 38.2p instead of the Chancellor’s statement.
For medium- and medium-priced properties with high prices of between £51,000 and £500,000, business value properties will be 53p.
These are the highest rates ever charged and are more than 12p higher than the national rate of 38.6p applied in 1991/92. At the time, most RHL properties with peak values under £12,000 already had no business rates due to small business rate relief, meaning the chancellor’s comparison in 1991 made no sense to them.
The analysis, carried out by the Global Table Firm Ryan, also revealed that the total support of the highway will fall by £ 420 million next year, which contradicts the view given in the budget speech.
The current 40 per cent RHL rebate, capped at $110,000 per business, will cost the exchequer £1.385 billion in 2025/26. From April 2026, it will be replaced by a new structure where various RHLs stay 5p below the standard rate, supported by a new 2.8P Surtax on Prestigies above $500,000.
That is expected to be £965 million in 2026/7 – a reduction of £420 million compared to the support provided by the existing rebate.
Alex Pluyyn, practice leader for Europe and Asia-Pacific Property tax at Ryan, said the government’s message does not reflect the real impact on international businesses on the street. “A large number of properties will pay higher tax rates than they did in the early 1990s, and many are now facing the highest rates they’ve ever worked,” he said. “If you look at the full envelope of funding, the support of high street businesses falls by £420 million next year. The headline message just doesn’t match the financial reality.”
While some smaller RHL properties will see a lower multiplier, most will not benefit from anything like 1991 level values. Most will pay more, and overall government support for the sector is decreasing rather than increasing. The result, according to the analysis, is a system that lowers prices for a small group while increasing many others – leaving the chancellor’s claim open to serious challenge.
