Retailers in the UK are calling on the government to reform business rates ahead of the 2025 Autumn Budget, citing a strain on high-street profitability and their ability to invest in growth.

As Chancellor Rachel Reeves prepares to deliver her fiscal plans on 26 November, trade bodies warn that many stores remain burdened by tax costs and need relief to boost retail sales during a critical trading season.

Weak sales trends despite value growth

Data from the Office for National Statistics (ONS) shows that in October 2025 retail sales rose by 3.0 per cent in value but only 1.1 per cent in volume over the three months to October.

However, on a monthly basis, volumes fell by 1.1 per cent in October — the first decline since May.

The drop has been attributed in part to consumers delaying spending ahead of Black Friday.

Dr Kris Hamer, Director of Insight at the British Retail Consortium (BRC), notes that “much of this was from a strong performance from smaller retailers” and hopes that Black Friday and the run-up to Christmas will provide an uplift.

PwC, which also analysed the October data, observed that consumers may have held back spending in the early autumn due to weaker sentiment and unfavourable weather.

Pressure on retailers from tax burdens

Retailers warn that they continue to face heavy financial pressure from the tax landscape. The BRC previously estimated that the sector has absorbed around £7bn of additional costs following changes in national insurance, the national living wage, and other fiscal measures.

In response to these mounting costs, the BRC argues that any business rates reform must be structured so that “no store pays more in business rates” — a key demand made ahead of the autumn budget.

They emphasise that lower, fairer rates would allow retailers to reinvest in stores and warehouses, which in turn supports jobs and economic growth.

There is also concern among major retailers about proposed surcharges affecting high-value commercial premises. Under current proposals, properties with a rateable value over £500,000 could face higher business rates — a move that could put as many as 400 large stores at risk of closure, according to BRC warnings.

Budget expectations and public finances scrutiny

Chancellor Reeves is expected to outline her budget on 26 November, a date which also marks the release of revised economic and public finance forecasts by the Office for Budget Responsibility (OBR), the UK’s independent public finances watchdog.

Reeves has stated that the Budget will “deliver on the priorities of the British people: cutting NHS waiting lists, cutting the national debt and cutting the cost of living.”

Retail leaders hope that, amid these announcements, the government will deliver meaningful relief on business rates. Their appeal centres not only on easing short-term financial pressure but on creating the conditions for sustained investment in the UK retail sector.

If the autumn budget honours their call, retailers believe it could strengthen consumer confidence, stabilise costs, and encourage growth through the all-important Christmas trading period.