5 ways the ‘Backing your Business’ plan could transform your high street business

The UK’s high streets aren’t just places to shop, they’re where communities meet, memories are made, and visitors stop to enjoy the view.

They’re part of our shared heritage, and small businesses are what keep them alive. They create jobs, support local culture, and add personality to our towns and cities. Whether it’s the coffee you grab each morning or the bookshop you always recommend, these businesses shape the character of our neighbourhoods.

But in recent years, they’ve faced tough headwinds: rising costs, declining footfall, and increasing vacancy rates.

The government’s new ‘Backing your Business’ plan aims to tackle these problems and make life fairer for small businesses in retail, hospitality, and leisure. Here’s what’s changing and how it could help you.

1. Permanently lower business rates for retail, hospitality, and leisure

From April 2026, retail, hospitality, and leisure properties with a rateable value under £500,000 will permanently pay a lower business rates multiplier.

In practice, this acts as a lasting tax reduction for smaller premises. Business rates are a significant fixed cost for many shops, cafés, and pubs, and a lower multiplier means paying less each year on an ongoing basis, rather than for a limited relief period.

For many small businesses, this means less money spent on fixed costs and more to spend on staff, stock, or upgrades and refurbishments. 

2. Ending “upward only” rent clauses

“Upward only” rent clauses mean your rent can only go up, never down, even if the market changes. This is a practice that has often left businesses facing higher rents even in declining markets. The new plan will ban them, giving tenants more power to negotiate and better control over costs.

3. Rental auctions to tackle empty properties

The government acknowledges how vacant units can harm footfall and the overall health of a high street. The plan will continue to champion High Street Rental Auctions, giving local authorities the power to bring empty properties back into use. This is designed to create opportunities for new and growing businesses while revitalising local shopping areas.

4. Up to 350 local regeneration zones

The Government will provide community investment funding for up to 350 places across the UK. These regeneration zones will back high street businesses, redevelop commercial spaces, and attract private investment. For small business owners, it could mean access to improved infrastructure, better public spaces, and increased customer traffic.

5. Making high streets safer

The government also acknowledges that a safe trading environment is a productive one. The plan therefore includes 13,000 more police officers and targeted measures to combat shoplifting and tool theft. For businesses, that’s both a deterrent to crime and a reassurance for customers and staff.

What business owners should do next

• If you own your premises, check your property’s rateable value to see if you could benefit from the 2026 business rates change.

• Review your lease terms as the removal of “Upward Only” clauses could be a chance to renegotiate.

• Keep an eye on local regeneration plans, these could open up new opportunities for funding or expansion.

• Prioritise security and use available schemes and police initiatives to safeguard your premises.

By lowering fixed costs, giving tenants more negotiating power, tackling vacancies, and investing in regeneration, the Government is aiming to give high street businesses the breathing room they need to adapt and grow. At Capitalise, we’ll keep translating policies like this into practical actions, so you can make the most of the opportunities on offer. If your high street business is looking to invest, expand, or simply strengthen cash flow, now might be the time to explore your funding options.

You can also read the full Back Your Business Plan on gov.uk.