Business tariff reforms are arranged to provide encouragement to Greggs, B&M and Halfords

Monday 01 September 2025 19:19

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The business reform proposed by the government next year is determined to provide encouragement to companies with large numbers of small shops such as Halfords, Curry’s and Dunelm, according to analysts.

Apart from a significant reaction to the reforms of large street retailers, analysts in Panmure Liberum have suggested that the steps will, both for the retail sector.

“Although there is still significant uncertainty around the final design and implementation, our analysis of the proposal because they stand show that reforms will be clean positive for this sector,” Analyst said.

The current business tariff is calculated by multiplying the value that can be assessed (RV) of a property, which is widely representing the annual property lease can be left in the open market, by the business tariff multiplier.

Values ​​that can be considered updated every three years. While the revaluation of 2023 benefits the retailer amid the decline in property value, next year’s rates are expected to increase significantly.

But the government plans to reform next year’s level, with a multiplier for small businesses that are likely to be reduced and multiplier for places with a value of more than £ 500,000 that will increase. The last multiplier will be announced in the autumn budget.

“The principle that underlies the proposed business level reform is to permanently reduce business tariff bills for smaller property … Without reducing government tax collection,” Analysts said.

Although there will be a few changes for small businesses that currently benefit from the assistance of tariffs and greater bills for businesses with several ‘anchors’ stores, medium companies are in a good place.

If a multiplier for property with an upgraded value below £ 500k decreases by 20p, and a multiplier for property with an upgraded value above £ 500k increases by 10p, Panmure expects Halford, Card Factory, Pets at Home, B&M and Gerggs to become the “Main Beneficiary”.

Analysts estimate that profit before tax in Halfords gets an increase of 25 percent, compared to an increase of 15 percent for card factory, 12 percent for pets at home and six percent for GERGGS.