Lancashire leader calls on chancellor to save the struggling high street sectors

The leader of a Lancashire business organisation has called on the chancellor to do more to save the struggling high street and hospitality sector.

Frank McKenna, chief executive and group chair of Downtown in Business has penned an open letter to Rachel Reeves telling her changes to business rates must go further.

He says the government's measures including the continuation of retail, hospitality and leisure relief and the commitment to introduce lower business rates multipliers from 2026 is a 'step in the right direction'.

In the letter he said that without stronger safeguards 'many businesses will still see higher bills in practice, driven by revaluations, cliff edges, and the withdrawal or tapering of reliefs.

"The risk is clear: if business rates change results in net increases for hospitality and high-street operators - even inadvertently - the consequences will be severe."

The Lancashire Business View columnist penned the letter in partnership with Bill Addy, chief executive of Liverpool Business Improvement District.

It warns about 'accelerated closures of restaurants, bars and independent retailers, job losses, particularly among younger and lower-paid workers, reduced investment and stalled regeneration and high streets drifting towards long-term vacancy and decline.'

Frank said: "Hospitality is already operating under intense pressure: 20 per cent VAT, rising wage costs, staffing shortages and regulatory burdens. Margins are thin. Confidence is fragile. Even modest increases in fixed costs can tip viable businesses into closure."

The letter also urged the government to ensure business rates change results in no net increase for hospitality and high-street businesses, strengthen transitional protections to avoid sharp bill rises following revaluation and address cliff edges that penalise businesses for growth or expansion and extend relief to mid-sized hospitality and leisure operators, not just the smallest premises.

Frank issued an urgent call to action saying that the rates change must 'reduce pressure on the high street not simply rearrange it'.

He said: "If the government wants thriving high streets, strong city centres and sustainable local economies, business rates must support occupation, investment and growth — not accelerate vacancy and decline.

"We stand ready to work constructively with ministers to help shape a system that is fairer, modern and fit for today’s economy."