The Association of Convenience Stores has called on the Government to act responsibly and go further on business rates support for all retail, hospitality and leisure (RHL) businesses before increases land in April.
Throughout 2025, ACS called on the Treasury to use the full extent of its powers to introduce a RHL multiplier that was 20p lower than the normal rates to offset the loss of discounts introduced in the pandemic. In the Budget in November, Chancellor Rachel Reeves announced multipliers that were just 5p lower than standard, leaving local shops, Post Offices and other essential community businesses facing increased bills in April and even larger increases in the coming years.
ACS chief executive James Lowman said: “The Government was right to introduce lower multipliers for all retail, hospitality and leisure businesses in recognition of the challenges they’re facing but it’s clear that they have to go further. Local shops up and down the country are under extreme pressure right now from increased costs and they should all receive support. Suddenly finding additional funding to help some and not others isn’t a responsible or sustainable approach.
“We are calling on the Government to demonstrate their support for the local shops that keep every constituency across the country going and by lowering business rates through lower rates multipliers. Anything less sends a message to 50,000 local shops, 10,000 Post Offices and thousands of other pharmacies and independent retailers that the government doesn’t value the vital contribution they make.”
Polling of UK consumers has consistently shown that the three services that people believe are the most essential and have the most positive impact on their local area are Post Offices, convenience stores and pharmacies. These are all businesses that are facing enormous challenges, including four figure increases in rates bills, and ACS has urged the Government not to leave them out in the cold when allocating additional funding to support high streets.
Modelling of the business rates increases coming in 2026 has found that independent retailers, and particularly those operating on petrol forecourts, are set to be hardest hit by changes to rates bills despite the new RHL multiplier and transitional relief packages. Some stores are facing increases of several thousands of pounds in April, despite what was announced in the Budget.
Case Study: Somers Town Post Office - St James’s Road, Southsea
Ahead of the 2026 revaluation, the shops’ Rateable Value will increase by £2,750 to £28,250. After transitional relief the shop’s rates bill increases by £1,145 in April 2026 (15% increase) and then a further £2,011 in 2027 (23% increase).
Local shops that are worried or unsure about how the business rate hikes are going to affect them should get in touch with [email protected] who can share ACS’ rates calculator to understand the impact in detail.
