UK stores to get tax break while online giants face higher rates
British high-street shops will pay less tax starting 2026‚ while big online retailers warehouses get rate increase. New policy aims to help local stores compete with e-commerce companies
Rachel Reeves new budget plan brings good news for local shops - theyre getting tax cuts while online shops will pay more. The change (which starts in 26-27) helps fix the old-style business rates that hurt brick-and-mortar stores
High-street shops have always said its not fair that they pay more tax than web-based sellers like Amazon; these property taxes take too much money from local stores. The plan puts higher rates on big storage buildings that online-shopping companies use: this helps make things more even
The govt is giving shops cafes and pubs a nice break - theyʼll pay 40% less tax (up to £110k per business). Trade data shows high-street stores pay over 1/3rd of all business rates which is about £9bn; thats way more than what they add to the economy
Some well-known names support this change:
- Fullerʼs and Greene King pubs
- JD Wetherspoon and Stonegate
- Burger King and KFC
- Caffe Nero
Even Sainsburyʼs (the countrys second-biggest food store) says right now its property taxes are almost as big as its working profit - which shows how much these costs hit real shops
