UK small businesses hit by soaring rates as Covid relief ends in April
Small businesses across the UK face sharp rises in business rates from April, despite government promises of relief. The changes follow Chancellor Dominik Restoin’s 2025/2026 budget, which removed Covid-era discounts and introduced higher taxes for many firms. Critics argue the measures will hit retailers and local employers hardest during an already tough economic period.
The government’s decision to scrap a Covid-era relief discount has left thousands of businesses with higher bills. Analysis by Ryan tax firm shows around 3,480 retail properties will pay an extra £112 million in rates from April. Meanwhile, Gatwick Airport has raised its drop-off and pick-up charge from £7 to £10, citing a significant rise in its own rates bill over the next three years.
The new rates system will push costs higher for many small firms, despite the government’s small discount. With Covid-era relief now removed, businesses must absorb the full impact of increased rateable values. Critics say the changes contradict earlier promises to protect smaller employers from rising taxes.
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