The Fed reacts to Business Rates concern following publication of IRC Heartbeat Survey

Following the publication of the Independent Retailer Confederation’s (IRC’s) periodic Heartbeat Survey which reviewed economic sentiment for the final Quarter of 2025, the Fed has reacted with dismay but not surprise to data across the independent retail sector indicating concern about the economic landscape and especially the impact of rising business rates for independent retailers.

The Fed reacted immediately to the most recent UK Government Budget in November, which proved disappointing to retailers on Business Rates and has also called on the Government to extend to small shops the extra support it has given to pubs following its recent U-turn.

The IRC survey which Fed members participated in, alongside other retailers which form the Independent Retailers Confederation indicated that though overall sentiment was slightly down in Q4 of 2025 to Q4 of 2025 (with 39% reporting in the last few months of 2025 compared to the same period the year before) there was particular worry about recent business rates changes.

These indicated that just over 63% of respondents said that recent Business Rate changes had slightly or significantly reduced investment decisions – and more than 70% of businesses surveyed felt they would increase investment if Business Rates were reformed.

The Fed’s President Hetal Patel commented: “The Fed works closely with the IRC where we can so as to understand the challenges across the independent retail space.

“In common with many colleagues in the IRC, we continue to be concerned about the impact of Business Rate changes which ultimately look likely to push up future bills for members in April and the years ahead – despite some transitional relief – following the Rates revaluation and the disappointing changes to the Business Rates multiplier which was not sufficiently cut in the last Budget.

“It is very worrying if Business Rate hikes are leading to a reduction in business investment as that is what allow shops to grow by providing more services to our customers and employing more staff. As a trade association representing our members, we continue to make this argument to Government – but we welcome feedback from any of our members about how their Bills will look after the new financial year begins in April.”