The Association of Convenience Stores (ACS) has warned that rising and increasingly unpredictable business rates bills are making it harder for local shops to invest in their businesses and continue offering the services their communities rely on.
With tight margins and rising operational costs, many retailers are finding higher fixed bills leave less room for improvements, hiring support staff and essential local services.
Retailers are increasingly concerned about the impact of the 2026 revaluation and the withdrawal of key reliefs, with many expecting rises of several thousand pounds in their bills.
The ACS highlights that while the lower Retail, Hospitality and Leisure multiplier offers some support, it falls short of addressing the scale of the challenge, and transitional relief only delays the financial hit, rather than easing it.
It also warns that instead of rewarding investment, the current system often in fact penalises it. Store improvements such as refits, energy-efficient refrigeration or upgraded security can push up a shop’s rateable value and lock retailers into permanently higher bills.
For many retailers, this means having to think twice before committing to upgrades that would genuinely benefit customers, staff and the wider community. ACS’ calls come a week after the recommendation from the Business and Trade Committee for CCTV and security measures to be excluded from business rates bills.
ACS chief executive, James Lowman (left), said: “Local shops want to keep investing in their stores, their staff and the services they provide to their communities, but rising business rates are making that harder every year.
“The 2026 revaluation and the loss of reliefs mean many retailers are facing bill increases of several thousand pounds, and while the lower retail multiplier is welcome, it doesn’t go far enough to offset these pressures.
“Unless the system is reformed to support investment, higher and higher fixed costs will inevitably mean fewer upgrades, fewer jobs and fewer services in the communities that rely on local shops.”
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