27 January 2026
Louise Hellem, CBI Chief Economist, said:
“Targeted support for pubs will be welcomed by those businesses, but it does not address the fundamental problem that our whole business rates system is broken. What we need is genuine reform, not another layer of complexity.
“The business rates burden is rising sharply across the economy, hitting major infrastructure as well as sectors like retail and hospitality. The UK’s business tax burden is already at a 25-year high, with the highest property tax in the OECD – before big increases kick in from April 2026.
“Business rates affect every bricks-and-mortar company in the UK, from pubs and shops to airports and utilities. Increasing taxes on business has consequences. With business investment and profitability already under considerable strain, growth is stalled and job creation is plateauing. A large transport operator told us that they faced a four-fold increase in their bills, while another said they had already halted investment in order to cover their business rates tripling.
“With pressure from rising energy and labour costs, firms are facing a perfect storm. Piecemeal reliefs and sector-specific carve-outs risk adding further complexity without giving businesses the certainty needed to invest and grow.
“The government is right to prioritise tackling cliff-edges, which have long acted as a brake on investment and growth across the economy. We welcome both the commitment to explore a slice-based system and options for improving investment incentives – such as enhancing improvement relief. We’re also keen to support the government’s new High Street Strategy to bolster local jobs and opportunities across the country.
“Businesses are crying out for fundamental reform not further tinkering. The case to act – implementing business rates reform that supports investment, competitiveness and economic growth across all sectors – has never been stronger.”