The British beauty industry has urged Greater Manchester Mayor Andy Burnham to act on business rates, adding a loud regional voice to a national argument about how the high street is taxed. For thousands of salons, barbers, nail bars and independent shops, the message is simple: the current system charges a fixed cost on premises before a single customer walks through the door, and that cost has become hard to bear. This article explains what the business rates reform push actually involves, what is changing, and what it means for a small business trying to plan its costs.
The short answer: business rates are a property tax that does not care whether you had a good month or a terrible one, and campaigners want the burden shifted so that bricks-and-mortar traders are not penalised against online-only rivals. Some reform is already in motion for 2026, but the detail matters, and the reliefs that soften the blow are changing at the same time. If you occupy a shop, studio or unit, you need to know where you stand.
What are business rates, in plain English?
Business rates are a tax on most non-domestic properties in England, including shops, offices, warehouses, pubs and salons. The bill is worked out by taking the property’s rateable value (an estimate of its annual open-market rent, set by the Valuation Office Agency) and multiplying it by a figure called the multiplier, which the government sets each year. Local councils collect the money.
Because the charge is based on the property rather than your turnover or profit, a quiet trading period does not reduce it. That is the heart of the complaint from high street businesses: a beauty salon on a busy parade can pay thousands of pounds a year in rates whether or not the appointment book is full, while an online seller working from a cheap unit or a spare room pays far less. You can look up your own rateable value and check your bill on the government’s business rates pages.
Why the beauty industry is calling on Burnham
The beauty sector is largely made up of small, labour-intensive, premises-based businesses. Rent, staff, energy and rates all land as fixed costs, and rates are one of the few a salon owner cannot easily renegotiate. Trade bodies including the British Beauty Council have repeatedly warned that the sector is being squeezed, and the latest call asks Andy Burnham, as Mayor of Greater Manchester, to use his regional influence to press for change and to support high street traders locally.
There is a practical reason to lobby a mayor as well as Westminster. Greater Manchester retains a large share of the business rates raised in the area, which means decisions about local reliefs and how the money is used are not purely a matter for central government. The campaign is asking for that lever to be pulled in favour of small, service-led businesses that keep town centres alive. You can read the sector’s own case on the British Beauty Council website.
What is actually changing in 2026
Two things are moving at once, and it is easy to confuse them.
First, the temporary relief. For several years, retail, hospitality and leisure businesses have received a large discount on their rates bills. That relief has been reduced in recent years and is set at a lower rate, capped per business. In plain terms, the safety net that many salons and shops leaned on during and after the pandemic is thinner than it was, so bills for some traders have already gone up even before any reform.
Second, the structural reform. The government has set out plans to introduce permanently lower multipliers for retail, hospitality and leisure properties with a rateable value below a set threshold, funded by a higher multiplier on the largest, most valuable properties. The intention is to give smaller high street premises a lasting reduction rather than a year-by-year discount that could disappear. The exact multipliers are confirmed at fiscal events, so check the current figures on gov.uk before you budget.
For a small business, the net effect depends on your property. A modest salon or shop may end up better off under a permanently lower multiplier than under a shrinking temporary discount. A larger operator could pay more. Nobody should assume the direction of travel without checking their own rateable value.
The reliefs that can cut your bill now
Whatever happens with reform, several reliefs already exist and are worth claiming. Many are applied automatically, but not all, so it pays to check with your council.
- Small Business Rates Relief: if your property has a rateable value below the threshold and you use only one property, you may pay no rates at all up to the lower limit, with tapered relief above it.
- Retail, Hospitality and Leisure Relief: a percentage discount for qualifying shops, salons, cafes and similar, subject to a cap per business.
- Rural Rate Relief and charitable relief: for eligible properties and organisations.
- Hardship relief and discretionary relief: councils can grant these case by case.
The table below shows how three typical small premises might be affected, using illustrative rateable values rather than a specific bill for your property.
| Business type | Illustrative rateable value | Most relevant relief | Practical point |
|---|---|---|---|
| Small nail bar, single unit | Under £12,000 | Small Business Rates Relief | May pay little or nothing, but must still be registered correctly |
| Hair salon on a parade | £12,000 to £51,000 | Tapered SBRR plus retail relief | Sensitive to changes in the multiplier and relief cap |
| Larger clinic or multi-room spa | Above £51,000 | Retail, hospitality and leisure relief where eligible | Standard multiplier applies; reform detail matters most here |
How to keep the cost under control
You cannot vote your rates bill away, but you can manage it. Start by checking that your rateable value is correct, because an outdated valuation can mean you are overpaying. You can challenge it through the Valuation Office Agency, and if you use a rates agent, choose one that is a member of a recognised professional body and be wary of firms that demand large upfront fees for a “review”.
Then build the cost into your numbers properly. Rates are a predictable fixed cost, which makes them ideal for planning, and the discipline of a 13-week cash flow forecast will show you exactly which weeks the pressure lands. Good bookkeeping software makes this far easier: Xero, QuickBooks, FreeAgent and Sage all let you set rates up as a recurring cost so it never surprises you, and they tie in neatly with the shift to digital record keeping covered in our guide to Making Tax Digital in 2026.
If rates are squeezing margins, look at the other fixed costs you can influence. Card processing is a common one, and our breakdown of what UK small businesses pay in card fees is a good place to find savings. Winning more local custom helps too, and strong local SEO to reach Google’s map pack is one of the cheapest ways for a premises-based business to fill quiet slots.
Frequently asked questions
Do business rates depend on how much I earn?
No. Rates are based on the rateable value of your property, not your turnover or profit. That is why campaigners argue the system hits premises-based businesses hardest during quiet periods.
Will the 2026 reform make my bill go up or down?
It depends on your property. Smaller retail, hospitality and leisure premises are expected to benefit from a permanently lower multiplier, while the largest properties may pay more. Check your rateable value and the current multiplier on gov.uk before you assume either way.
Can a mayor really change business rates?
A mayor cannot rewrite national rates law, but in areas that retain a share of the rates they raise, such as Greater Manchester, there is scope to influence local reliefs and how the money supports high streets. That is why the beauty industry is lobbying Andy Burnham as well as central government.
How do I challenge my rateable value?
You can check and challenge your valuation through the Valuation Office Agency using the government’s business rates service. If you use an agent, pick a reputable, accredited firm and read the fee terms carefully.
Are there reliefs I might be missing?
Possibly. Small Business Rates Relief, retail relief and discretionary hardship relief all exist, and not all are applied automatically. Contact your local council to confirm what you are entitled to.
What to do next
- Look up your rateable value on gov.uk and confirm the current multiplier so you know what your 2026 bill is likely to be.
- Contact your council to check every relief you may qualify for, and challenge the valuation through the Valuation Office Agency if it looks too high.
- Enter rates as a recurring fixed cost in your accounting software and stress-test it against a 13-week cash flow forecast.
- Watch the reform detail at the next fiscal event, and add your voice through a trade body such as the British Beauty Council if the changes affect your sector.
