LCCI Comment on Business Rates

Wednesday 23 July 2026

Karim Fatehi OBE, CEO of the London Chamber of Commerce and Industry (LCCI), said:

"Cutting business rates by 20% for pubs, clubs and live music venues is a welcome step for many of London's hospitality firms. These businesses play a vital role in London's economy, creating jobs, attracting tourists and supporting our world-renowned cultural scene.

This announcement is an early sign the new Government recognises the significant increase in operating costs widely experienced by businesses. The long-term solution needs to go beyond £100 million of support for certain sectors, however. Firms across the capital, particularly SMEs, continue to grapple with high employment costs, inflationary pressures and an outdated business rates system that discourages investment in physical premises. Retailers, hotels, manufacturers, office-based businesses and other firms operating from bricks-and-mortar locations continue to face an unfair tax burden that makes it harder to hire, invest and grow.

As the new Prime Minister and Chancellor look to their first Budget, it is vital the Treasury engages extensively with London's business community on wholesale reform to business rates. This should include lowering the multiplier to at least 45p and ensuring the system better reflects London's property market, with a lower overall burden. This year's Budget is the opportunity to deliver the long-term changes that London's economy needs to deliver growth across the country."

ENDS

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