Labour promised in their manifesto to reform business rates to level the playing field between online and physical businesses. It’s time to make true, says Ros Morgan

Introducing the Real Rates Reform Alliance

Businesses are hiking costs for consumers, slashing investment and cutting staff as a direct response to spiralling business rates bills.

That’s the key finding of polling commissioned by Heart of London Business Alliance as part of a major new national campaign demanding reform of a system that is broken and unsustainable.

I am really proud to be chairing the Real Rates Reform Alliance, a coalition of business organisations launching today. Members include UKHospitality, the Institute of Directors, the Association of Town and City Management, the Music Venue Trust and the British Independent Retailers Association. We have come together to call on Labour to do what it promised in its election manifesto and reform business rates to level the playing field between online and physical businesses. For my members, this has become their number one issue.

Research by market research company Savanta reveals the growing economic damage being caused by the existing system. Almost half (47 per cent) of businesses say their business rates bill has increased since April 2026, while just one in 10 have seen bills fall.

More than half (55 per cent) say business rates are now a major or moderate cost to their business.

Nearly one in three (31 per cent) have raised prices for customers as a direct response to higher business rates, almost one in five (19 per cent) has delayed investment and around one in six have reduced staff numbers (17 per cent).

Our alliance is calling for a new hybrid business rate solution that reduces the tax burden on bricks-and-mortar businesses while ensuring the tax system better reflects today’s digital economy.

It would involve a small levy of two per cent being imposed on all online sales, enabling a cut of 37 per cent for businesses with physical premises – a major shot in the arm for high streets and communities.

Andy Burnham has already acknowledged the current system isn’t fair and talked about levelling the playing field between online and some physical businesses, such as pubs. We want him to go further.

By bringing together a broad coalition of business organisations behind a practical, credible solution, we want to work with the government to seize the opportunity of lasting reform that protects high streets, supports investment and creates a fairer tax system for the modern economy.

If you can’t handle the heat

Recent days have shown the challenges likely to face workers and businesses in London as exceptional heat becomes more common. We will have to consider whether our infrastructure – including air conditioning on the Tube and in offices – is sufficient. Already, there’s a debate about whether a maximum workplace temperature should be introduced. Government needs to work with business to ensure as smooth a transition as possible to a more Mediterranean climate.

The other World Cup win

I was thrilled that ministers listened to calls from HOLBA and others to show maximum flexibility on licensing hours around the World Cup. People were able to enjoy a wonderful night out watching the big England/Ghana game, with pubs and bars able to stay open to 5am. This was a one off, but it shows that flexibility on licensing, particularly around big national events, can work well.

Are e-bikes out of control?

In the last 30 days alone, HOLBA street teams have reported 183 incidents involving dockless cycles to the operators via Westminster City Council. E-bikes have transformed the way many people get about our city, which is a good thing. But it’s clear that the current system isn’t working as it should and too often bikes are being dumped in inappropriate places, causing obstructions and nuisance. We’re working with local authorities and the Mayor to see whether the way they are regulated needs to change.

Ros Morgan is the chief executive of Heart of London Business Alliance