A prominent agency says it will continue its campaign against what it insists is a “flawed” business rates policy proposed by the government.

Yesterday  the government non-domestic rates Bill had its third reading in the House of Lords before being sent back to the Commons for consideration. The Bill received a setback during the Report stage last week, where several peers voted through amendments that are unfavourable to the government’s plans.

The Bill, which was first introduced to the Commons before Christmas, claims it will “Save the high street” by replacing current retail/hospitality/hospitality reliefs by introducing a lower multiplier for smaller businesses in the retail/hospitality/leisure sector in 2026. 

However, it plans to pay for this lower multiplier by charging a higher multiplier to all businesses with a rateable value of above £500,000 of up to 10p in the £, effectively putting an extra 20% on their rates bills. This would include hospitals, manufacturing sites, offices and the larger high street retailers.

Colliers Business Rates Team feels the bill is badly thought out and has not received a proper impact study before tabling.  It has been lobbying the House of Lords to this effect pointing out that targeting the bigger businesses, including retailers and hospitality businesses with higher rates bills will do little to “save the high street” since the only outcome will impact on profits across the board and the ability of such businesses to expand or create jobs.

John Webber, Head of Business Rates at Colliers, says: “The government is rushing through Parliament new business rates legislation that has not been properly thought out and will potentially add millions of pounds onto the rates bills of UK Plc- doing little to help grow the economy.”

He welcomes the amendments the Lords have suggested to the bill which include: Exempting Hospitals and healthcare settings from the new higher multiplier; Exempting anchor stores on high streets from the higher multiplier; Including the manufacturing industry in the types of businesses that can benefit from the lower multiplier; Asking for a review on how the provisions in the Act may affect business whose RV is close to £500,000; Removing the Clause that takes away charitable business rates relief for private schools; and a review of the merits of a separate Use Class and associated multiplier for retail services provided by fulfilment warehouses that do not have a material presence on local high streets.

Webber continues: “Given the government’s enormous majority in the House of Commons, it will most likely reject these amendments from the Lords, despite the common sense they bring; and the bill will become law. I hope however that the Government will at least consider the issues that have been highlighted and conduct some fact finding among businesses.

“Given our strong lobbying Parliamentary campaign, it is also positive to see the level of scrutiny applied by the House of Lords to these measures. We are determined to continue our campaign and point out the flaws in the government’s policy on behalf of both our clients and for the good of UK Plc in general.”