The latest revaluation of business rates is placing significant new pressure on UK manufacturers. Our analysis shows that nearly 90% of firms have seen their rateable values increase from April 2026, with the sector facing an estimated additional £939 million in annual costs.

For many businesses, this is not a marginal expense. Business rates are now one of the largest non-performance-related costs, influencing decisions on investment, innovation, and employment. In response to rising bills, manufacturers report they are increasingly considering cost-cutting measures—including potential reductions in workforce—putting up to 25,000 jobs at risk in a worst-case scenario.

The current system is widely viewed by industry as outdated and disproportionate, placing a heavier burden on property-intensive sectors like manufacturing. With limited access to reliefs and growing exposure to higher multipliers, there is a clear need for reform.

This report sets out the scale of the challenge, the impact on businesses across the UK, and a series of practical recommendations to create a fairer, more transparent, and more growth-oriented business rates system.

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