# UK business rates reform concerns

> Live situation record from CLSTR: https://clstr.news/situations/uk-business-rates-reform-concerns
> Updated: 2026-10-13T08:56:43.000Z. Sources: 7. Developments: 2.

Business leaders in Scotland and the wider UK are expressing significant concern regarding business rates and property tax reforms. In Scotland, a report from the Fraser of Allander Institute indicates that reforming business rates is the primary priority for approximately 34% of surveyed firms ahead of the upcoming budget. The report also notes a deteriorating relationship between the private sector and the Scottish Government, with 69% of firms stating the government lacks an understanding of the business environment.

In England and Wales, retailers are warning that proposed changes ahead of the 2026 revaluation could threaten the viability of high streets. Jason Tarry, Chairman of the John Lewis Partnership, cautioned that certain reforms might function as a ‘warehouse tax,’ disproportionately impacting large department stores and supermarkets. Concurrently, the Federation of Small Businesses has advocated for expanding Small Business Rate Relief, suggesting that 28% of small employers would increase hiring if such relief were implemented.

## Claims

- Proposed business rate changes could lead to more high street closures. (single source)
- The John Lewis Partnership pays approximately £170 million annually in business rates. (single source)
- More than 200 John Lewis and Waitrose stores have faced higher business rate charges. (single source)
- Approximately 28% of small employers would hire more staff if Small Business Rate Relief were expanded. (single source)
- Business rate revaluations are conducted every three years to reflect commercial property market changes. (single source)
- A new structure for business rates will be introduced in April 2026. (single source)

## Timeline

### 2026-10-13: UK retailers warn business rate reforms threaten high streets

UK retailers and small businesses warn that proposed business rate reforms and the 2026 revaluation could increase costs, threaten high street viability, and impact hiring and investment.

5 sources. https://clstr.news/cluster/uk-retailers-warn-business-rate-reforms-threaten-high-streets

### 2026-10-05: Scottish businesses prioritize business rates reform ahead of budget

Scottish firms identify business rates reform as their top priority ahead of the budget, amid widespread economic uncertainty and a perceived lack of effective engagement from the Scottish Government.

2 sources. https://clstr.news/cluster/scottish-businesses-prioritize-business-rates-reform-ahead-of-budget

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Cite as: UK business rates reform concerns. CLSTR, https://clstr.news/situations/uk-business-rates-reform-concerns