Further detail needed, says Logistics UK as Treasury publishes Business Rates Interim Report  

It confirms its intention to introduce higher multipliers on premises with a Rateable Value (RV) of £500,000 or over, to fund lower multipliers for retail, hospitality and leisure properties under £500,000.  

The report says that stakeholders highlighted that Business Rates deter investment, with current Improvement Relief seen as too short and too restrictive, and Empty Property Relief inadequate for large sites. Concerns were also raised over revaluation methods and the lack of transparency, with calls to shorten the antecedent valuation date.  

The paper says the government will explore reforms including moving from the current “slab” system to a marginal “slice” system, and changes to Small Business Rates Relief to better support growth.  

It also plans administrative reforms, including merging the VOA with HMRC. Final decisions, including on transitional relief for the 2026 revaluation, will be announced at the Autumn Budget 2025. 

Logistics UK’s Head of Infrastructure and Planning Policy Jonathan Walker said: “The impact of these changes will vary across the logistics sector. While the system needs reform to avoid penalising investment, many distribution centres and warehouses will likely face higher bills under the new multipliers for larger properties.  

“The acknowledgement that current relief is too restrictive for large sites is welcome, however the real test is whether the promised investment incentives will outweigh the higher costs for major logistics hubs. We look forward to seeing further detail in the Budget.”