Logistics firm warns rates changes may stall SMEs
Small firms may hold back on hiring and capital projects because of uncertainty over business rates, a UK logistics company warned on Tuesday.
Andrew Cusworth, managing director of Buckle Shipping, said operators of warehouses and other commercial sites need clearer expectations of future tax bills to plan long-term.
The warning comes as England prepares to change its business rates system in April 2026, alongside a fresh revaluation of commercial properties in England and Wales.
The revaluation will update the rateable values of more than 2 million properties to reflect market shifts. Higher valuations do not automatically raise tax bills, but they can alter the costs faced by individual businesses.
“For many small and medium-sized businesses, the challenge is not one single cost increase, it is the cumulative effect of rising overheads across the board,” he said.
Government policy introduces lower rates multipliers for qualifying retail, hospitality and leisure premises, funded partly by higher rates on properties valued at £500,000 or more. A £4.3 billion transitional support package over three years aims to soften sharp increases after the revaluation.
Companies outside the sectors benefiting from reduced multipliers continue to feel pressure from property costs, alongside higher wages, energy bills and other operating expenses.
When fixed costs become unpredictable, firms often delay expansion, a pattern observed during previous periods of fiscal uncertainty. Predictable expenses allow businesses to allocate capital with confidence, reducing the temptation to postpone projects.
He noted that Buckle Shipping’s warehouse, opened three years ago, is still building its customer base and investing in growth. Additional fixed costs could limit the resources available for further expansion.
“Companies need stability and predictability when making long-term decisions,” Andrew Cusworth added. “Whether it’s taking on additional space, investing in new facilities or recruiting more staff, confidence in future operating costs is an important factor.”
The debate over rates has raised questions about whether extra relief for high-street retailers might shift more of the burden onto warehouses and other commercial properties. For logistics and distribution firms, where large physical premises are essential, such changes could shape decisions on new facilities and employment.
The concerns highlight a broader challenge for policymakers: delivering targeted relief to struggling sectors without discouraging investment in other parts of the economy.
