Analysis reveals ‘retail’s biggest winners and losers’ in business rates shake-up

A Waitrose store at London’s Canary Wharf is among retail’s biggest business rates losers, with its bill set to rise by more than £300,000 according to analysis.

The Canada Place store’s liability will rise by 30% to £1.4m, putting it among the hardest hit by business rates reforms coming in at the same time as new rental values are applied to calculate the tax.

The analysis reveals differing fortunes across retail, with destinations such as Camden Market also badly hit, while others such as Harrods on Brompton Road are in line for a major bill reduction.

Chancellor Rachel Reeves used the budget to introduce a new higher rate of tax for the largest properties, with a rateable value over £500,000. From April next year, the new ‘high-value multiplier’ will be 50.8p, above the new standard multiplier of 48p.

The extra tax raised is paying for a 5p reduction in the multiplier for smaller retail, hospitality and leisure (RHL) premises, with a rateable value below £500,000. The new permanent discount replaces Covid-era 40% business rates relief for RHL premises.

At the same time new rateable values are coming into effect, with steep increases in some areas and sharp falls in others. The tax bill is calculated by applying the relevant multiplier to the property’s rateable value. 

The bill for the land occupied by Hyde Park’s Winter Wonderland, which hosts a number of festive markets, will rise by 30% to £720,000, as its rateable value jumps from £1.0m to £3.75m, according to the analysis. The tax rise would be sharper still without transitional relief, which caps increases for 2026/27 at 30%.

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Large-format and DIY stores including a B&Q in Colchester’s Stane Retail Park are also among those facing a 30% increase, according to the analysis.

Meanwhile, the bill for Waterstones’ flagship store on Piccadilly will drop by 45% to £1m, as its rateable value drops from £3.3m to £2m.

The bill for Harrods is set to drop by 13% to £8.7m, as its rateable value falls from £18m to £16.8m.

“Seasonal attractions like Winter Wonderland and Lapland UK have grown significantly in popularity, so upward pressure on their valuations was not unexpected but the level of increases were,” said Alex Probyn, practice leader for property tax at Ryan.

“Across the wider retail sector, we’re seeing extremes both geographically and by format. Large-format and DIY stores are experiencing some of the steepest reductions as rental evidence softens, while outlet luxury at Bicester has surged on the back of exceptional trading.

“Bond Street’s world-record retail rents have remained broadly steady between the valuation dates, with prime headline levels holding firm at the very top end of the market. That stability is clearly reflected in the draft 2026 valuations for the major luxury houses.

“Taken together, these movements underline just how uneven the retail landscape has become.”

Retail’s biggest winners – largest reductions (£ in RV)

These properties will see some of the sharpest cuts in business rates bills from April 2026

Retail’s biggest losers – largest increases (£ in RV)

Despite transitional caps limiting 2026/27 liability rises to 30% for large properties, these increases will compound over subsequent years

Source: Ryan