• The analysis builds on research first conducted in March; since then, the number of businesses considering job cuts, store closures and price rises has increased significantly.
• 76% of businesses now say they will review staffing levels to manage higher bills – up from 69% in March.
• 70% will consider passing on additional costs to consumers, a jump from 64% in previous survey. 
• 36% are now considering the closure of certain locations, compared to 31% nine months ago.

25 November 2025, London: New analysis from pro-growth group representing the UK’s flagship high streets has revealed that the “super tax” business rates higher multiplier – set to be decided on in Wednesday’s Budget – will cause more store closures, job losses and higher inflation that previously expected.

Government plans to introduce the super tax adds further pressure to an industry already grappling with higher national insurance costs and the uplift in the National Living Wage – both of which have already driven up operating costs for businesses across the UK.

High Streets UK’s latest survey of retail, hospitality and leisure (RHL) businesses operating in flagship locations found that the introduction of the maximum proposed higher multiplier would put almost 6,000 jobs at risk, force 238 commercial units to close and increase prices by 3%. The group represents flagship high streets such Birmingham New Street, London’s Oxford Street and Liverpool’s Church Street.

Business concerns around rising operational costs – of which business rates increases remain a worrying unknown – have worsened since High Streets UK conducted its first round of research in March. Since then, the number of businesses saying they are considering job cuts, closures and price increases has increased across the board.

This second round of this research found that:

• Almost 76% of businesses (up from 69%) would seek to manage higher costs by cutting staff – putting 6,000 jobs at risk.
• A majority of 70% (up from 64%) said they would need to pass on costs to consumers, driving estimated price increases of 3%.
• Just over a third (36%) of affected businesses said they are considering closing certain locations, compared to 31% previously. This would put 238 stores at risk of permanent closure.

Properties set to be affected by the new ‘super tax’ multiplier are those with a rateable value of over £500,000. Such properties are 5.1x more likely to be in a flagship high street than anywhere else – despite Government claims the proposals are aimed at online giants.

Dee Corsi, Chair of High Streets UK, commented: “Our research shows that the concerns of business have grown significantly since March – after being hit hard with tax rises in April, with more punishing increases looming, their capacity to absorb further increases to operating costs has narrowed sharply. 

“We have warned the Government that moving ahead with a new “super tax” higher multiplier will be a disaster for jobs, investment and growth across the country, and a hammer blow to the high streets the government is trying to protect. Far from targeting online giants, the “super tax” is 5 times more likely to hit flagship anchor stores – the same businesses which drive footfall and spend for their smaller neighbours. It is an ineffectual way to drive growth, and it is working people who will suffer most.”

High Streets UK is calling for an exemption of all RHL operator from the new multiplier; a full impact assessment of proposed multiplier increases; freezing any hike in the higher multiplier until 2027/28 to provide greater certainty; and ring-fencing rates for investment in the local flagship high street area, so those who pay the highest rates see a positive impact on services on their doorstep.

About the survey

A survey of 50 retail, leisure, and hospitality businesses that represent over 2000 trading units on flagship high streets was carried out between 3 November 2025 and 18 November 2025.