Uk manufacturers face £940m annual business rate hike

British manufacturers are set to pay £940 million more in Business rates each year due to changes introduced this month by Labour's shadow chancellor, Rachel Reeves.

Factory owners slam 'blunt instrument' business rates system

Manufacturers face a disproportionate Business rates bill because they often have large factory floors, according to analysis by MakeUK, an industry lobby group. It said that factories accounted for a fifth of England and Wales’ property by rateable value, despite manufacturers only accounting for a tenth of economic output.

MakeUK argued that the government should give a year's notice before raising rates and that rates should be linked to Business turnover, size and type, with discounts for small and mid-sized companies.

The chancellor increased Business rates at the budget in November, including an additional surcharge on buildings with a rateable value of more than £500,000. Two-thirds of UK hospitality businesses plan to cut jobs and one in seven will close, according to a survey.

MakeUK policy director Verity Davidge said: