Business rates system 'major brake on investment and growth'

29 Apr 2026

The Confederation of British Industry (CBI) has warned that the UK's business rates system poses a 'major barrier' to UK growth and competitiveness.

A survey of almost 700 firms carried out by the business group revealed that the current business rates system is adversely affecting productivity, economic growth and investment.

32% of business leaders polled said that the system has played a significant role in cancelling, reducing or delaying planned investment in their property.

76% of firms stated that higher overall business rates bills suppress investment. 53% said that uncertainty regarding future liabilities undermines a business's ability to plan long-term investment.

Louise Hellem, Chief Economist at the CBI, said: 'Business rates are no longer just a cost of doing business – they're a major tax on ambition and one that effectively penalises investment.

'When a single refurbishment can trigger a 40% increase in rateable value, or a £1 change can move a firm from one band to another and add £39,000 to their bill, the system is clearly not fit for purpose in a competitive, modern economy.'