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Business rates rise ‘stands to finally put many out of business completely’
Carla Denyer has joined forces with a number of small businesses across Bristol to ask for support from the government as some find themselves in an extremely precarious financial position ahead of a rise in business rates.
The MP for Bristol Central has written to the chancellor, Rachel Reeves, laying out in no uncertain terms that the “substantial” increase in business rates for the 2026/27 financial year “stands to finally put many out of business completely”.
Signatories of the letter include representatives from music venues, restaurants and pubs; as well as Bristol City Council’s leader and deputy leader, Tony Dyer and Heather Mack; and Green Party councillors from wards within Denyer’s constituency.
“With the global economy teetering on the edge of recession, the Government risks driving many small businesses to closure, with devastating consequences for local communities and employment,” says Denyer in the letter, which can be read in full here.
“Increases to rateable values are also pushing SMEs beyond the threshold for claiming Small Business Rate Relief, which is seeing a vital lifeline they had previously relied upon suddenly cut off.
“Hospitality businesses in particular are struggling with business rate pressures combining with high national insurance obligations and energy costs which they are often less able to absorb, while they are disproportionately affected by reduced disposable incomes.
“Illustrating the scale of the problem, one business owner I spoke with said that ‘after this April it will make no business sense to continue trading’.
“There is also a longstanding moral hazard – it is the Government through the Valuation Office that determines business rates, but local authorities which administer and collect them while incurring the political cost of doing so, and dealing with the fallout of struggling businesses and shuttered high streets.”
Denyer calls business rates “an inefficient and regressive tax” which should be replaced with a fairer form of land taxation.
Her letter asks Reeves to provide support to SMEs in order to better equip them to survive the current economic crisis and introduce a five per cent VAT cut for hospitality businesses.
Among the small business signatories are Harrison Baillie from Thekla, Cathie Smith from CrossFit Clifton, Kristian Crews from Restore, Sam Gregory from the Bank Tavern, Ben Smithson from Aqua and Jo Drury from Cosies.
The letter from Denyer was sent on the same day as the chancellor announced that ticket prices for families at various attractions such as theme parks and zoos will be cheaper during the summer holidays through a temporary reduction in VAT from 20 per cent to five per cent.
The discount – which will be up to businesses to pass on to customers – will also apply to children’s meals in restaurants and cafes.
Main photo: Martin Booth
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