Business rates reform set to give boost to Greggs, B&M and Halfords

Monday 01 September 2025 7:19 pm

The federal government’s proposed reform of enterprise subsequent yr is about to beef up firms with a lot of small shops like Halfords, Curry’s and Dunelm, in response to analysts.

Regardless of important backlash in opposition to the reform from giant excessive road retailers, analysts at Panmure Liberum have steered the transfer would, total, be good for the retail sector.

“Though there may be nonetheless important uncertainty across the closing design and implementation, our evaluation of the proposals as they stand suggests the reforms could be a internet constructive for the sector,” analysts stated.

Enterprise charges are at present calculated by multiplying the Rateable Worth (RV) of a property, which broadly represents the yearly hire the property might have been let for on the open market, by a enterprise charges multiplier.

Rateable values are up to date each three years. Whereas the 2023 revaluation benefited retailers amid a drop in property values, subsequent yr charges are anticipated to rise considerably.

However the authorities plans to reform charges subsequent yr, with the multiplier for small companies prone to be decreased and the multiplier for venues with a worth of over £500,000 set to rise. The ultimate multipliers can be introduced on the autumn Finances.

“The precept underlying the proposed enterprise charges reform is to completely scale back the enterprise charges invoice for smaller properties… and not using a discount within the authorities’s tax assortment,” analysts stated.

Whereas there could be little change for small companies at present benefitting from charges aid and a much bigger invoice for companies with a number of ‘anchor’ shops, mid-sized corporations are in a great spot.

If the multiplier for properties with rateable values beneath £500k reduces by 20p, and the multiplier for properties with rateable values above £500k will increase by 10p, Panmure count on Halfords, Card Manufacturing facility, Pets at Dwelling, B&M and Greggs to be the “key beneficiaries”.

Analysts count on revenue earlier than tax at Halfords to get a 25 per cent enhance, versus a 15 per cent enhance for Card Manufacturing facility, 12 per cent for Pets at Dwelling and 6 per cent for Greggs.