The Fed cautiously welcomes the “Transforming Business Rates: Interim Report”

11/09/2025

The Federation of Independent Retailers (the Fed) has cautiously welcomed the “Transforming Business Rates: Interim Report”, which includes a number of apparently positive initiatives which could benefit the retail sector and will be of special interest to small independent shops.

These include measures changing the rates effect of opening a second property, changes to Transitional Relief, measures on Improvement relief when properties are enhanced as well as preparations for the merger of VOA and HMRC which could improve clarity of this currently very complex area of taxation.

The Fed’s National President Hetal Patel said: “Overall, the retail sector accounts for about 5% of the economy, but 20% of the Rates Bill and it is right that this area is subject to reform as our members face competition from online retailers based in out-of-town locations.

“Whilst the Fed welcomes the Chancellor and government’s focus in this area, we urge them to fully consider the importance of the retail sector – especially small independent shops, which are often at the heart of their communities and have rightly benefited from Rates Relief in the past.

“Many of our members had higher rates bills in April because of lost Retail, Hospitality and Leisure Relief in the last Budget and will await this year’s Budget and the Business Rates Revaluation – which will occur for the first time since 2023 – with concern.

“We are keen for the government to introduce new permanent retail, hospitality and leisure multipliers as low as possible from 2026, and to upwardly rate Small Business Rates for the very smallest businesses in line with inflation – but remain open to continued positive engagement in this area.”