While there’s been a spate of articles about business rates recently, it is the hospitality industry that has attracted most of the headlines. It is nonetheless true that the off-trade will be deeply affected by the business rates change scheduled for 6 April 2026.

The removal of the UK Retail, Hospitality & Leisure (RHL) relief will undoubtedly have a significant impact on many. A measure that initially began as a response to the Covid pandemic, the relief offered a 40% rates discount for those eligible.

Meanwhile, the expansion of business rates multipliers from two to five categories will lower rates for some but raise them for others. Specifically, those with properties with a rateable value of over £500,000 will be required to pay an increased rate, thus penalising those trading in more affluent areas (where many independent merchants are located).

The government has offered some support with the Supporting Small Business Relief scheme, which caps bill increases for those eligible. However, according to the retailers approached by Drinks Retailing, this aid is not significant enough.

Across the board, retailers – particularly indies – have expressed concern. For some, like Cassie Butler Gould, manager of Butler’s Wine Cellar in Brighton, the full impact of changing business rates is not clear but is enough to cause concern. “We aren’t entirely sure how the changes will affect us yet, but no doubt they will have a negative impact,” she said.

For others, the level of the increase is already obvious. Phil Innes, owner of Loki Wine in Birmingham, said: “We are seeing around a 16% increase in business rates.” More extremely, Matt Tipping, CEO at Jeroboams, said: “No shop of ours will rise by less than 54%.”

Notably, retailers said they don’t resent the UK RHL relief ending. But the timing, along with other parallel increases, is bleak.

Tipping said: “What grates is the lack of understanding from the government with regard to what’s needed to help businesses grow our economy. I don’t believe they recognise the impact of the short period over which cumulative government-led costs have risen.”

Innes added: “The business is already coming under a lot of pressure from other taxation, whether it is duty, EPR or National Insurance. These are all impacting the ability to make any profit in the industry.”

Considering the alcohol sector more widely, Miles Beale, CEO of the Wine & Spirit Trade Association, noted the effect changing rates will have on the whole supply chain. “We remain concerned as to the impact on importers, warehousers and the wider route to market in the UK’s SME-dense alcohol industry,” he said.

Looking to the future, retailers were at pains to stress the urgent need for significantly increased support. “If we as a country want to preserve the high street and local retailers, we need to support them with extra funds before they’re gone,” said John Chapman, MD of The Oxford Wine Company.

“As it stands, I cannot see the resurgence of indie wine retail continuing with the strength we have now.”