Action needed on business rates says Chamber after rise in firms reporting concern

Richard Blackmore from The East Midlands Chamber

East Midlands Chamber has renewed its call for business rates reform after a national study revealed a third of firms across the country are worried and half are considering raising their prices.

The research, carried out by the British Chambers of Commerce, showed concern over business rates to have reached its highest level since the question was first asked in 2017, with hospitality, followed by the manufacturing and logistics sectors, reporting the greatest level of anxiety.

Reform of business rates is one of the key asks in East Midlands Chamber’s Framework for Growth, its recently published landmark document outlining policy asks that would enable the region to thrive.

Worry over business rates rose to the third biggest concern of East Midlands firms in the Chamber’s Quarterly Economic Survey for Q4 of 2025, which also showed an increase to 4 out of 10 businesses in the region considering raising their prices.

Headline findings from the British Chambers of Commerce UK-wide research into business rates

• A third of firms (34%) reported concern over business rates
• Concern is highest in the hospitality sector (49%) followed by manufacturing (44%) and logistics (43%)
• In 2024, 27% of firms said they had scaled back or cancelled premises improvements due to the burden of business rates
• In 2025, before the Budget, almost a quarter (23%) of firms said they planned to adjust prices due to business rates pressure
• More than half of UK firms (52%) currently plan to put up prices due to rising costs

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Business needs a level playing field and the way business rates are now disproportionately impacts smaller firms, manufacturers and those with bricks-and-mortar premises.

“Hospitality is one of the industries that, without change to business rates, is going to be hit hard from April this year, as would sectors like logistics and manufacturing, so it’s essential the Treasury re-think their approach straight away.

“Yesterday’s announced Treasury review needs to support all sectors that will be hit hardest from 1st April, otherwise, along with other cost increases, this will inevitably be a greater burden than business can bear. Government continues to ask a lot of business, the level of support from Government must be reciprocal.

“In the East Midlands, our Quarterly Economic Survey has shown more businesses in the region reporting business rates as a top concern – now the third greatest worry after inflation and corporate taxation – while pressure to consider putting prices up has risen from three to four out of ten businesses.

“Firms need to be incentivised to invest, not burdened with unfair cost and that’s why our Framework for Growth, outlining the key asks that would enable the East Midlands to thrive, specifically sets out the need for business rates reform and it’s essential that happens.”