20/01/2026
Hi
Many of you will have seen how vocal I've been in recent years about the economy and business rates.
I don't have a shop so I'm a little out of the loop since the recent budget but lately I keep seeing business rates talked about in the news and on social media so I thought I'd take a look at the government website and try and make sense of it all and understand how some businesses might be affected beyond April.
I am sharing this screenshot because it shocked me.
It's an example explaining to businesses how to calculate rate changes.
What blew my mind is that the Govt think it's okay to use an example where a rateable value goes up 120% within 12 months.
£50,000 to £110,000. That's a 120% increase.
The way shops are taxed in reality is a bit more complicated but here's what really gets me:
Imagine being a business owner and taking on a lease of a shop. You've committed to a contract, you've invested your money, you've made your plans based on certain costs.
Then the govt changes your rateable value - something you have ZERO control over. You can't negotiate it. You can't appeal it just because you can't afford it. You're completely powerless.
In this example, even with the "relief" Barbara's bill goes from £14,970 to £19,461. That's nearly £4,500 more. And that relief is just temporary - eventually she pays the full amount based on that £110,000 valuation.
If you were thinking of opening a business knowing this could happen to you, what would you be thinking?
Like me you'd be thinking it's probably not a good time to open a business right?
It blows my mind that somebody or a group of people in govt would think this is a good example to show people. It tells you everything about what they think is acceptable.
You make a business decision, you sign a lease, you invest everything - and then one of your biggest fixed costs can jump and there's nothing you can do about it.
What do you think?
I hope this is helpful.