Pubs, restaurants and shops carry the highest tax burden of any UK sector, research reveals

From the Newshound archive · first published 1 October 2026 · last updated 2 October 2026.

Britain's high street businesses face a heavier effective tax rate than any other major sector in the economy, according to new research published by the British Retail Consortium. Hospitality and retail firms are being crushed by a combination of business rates, employer National Insurance and VAT that outstrips what banks, tech giants and energy companies pay. The BRC warns the imbalance is already costing jobs and forcing prices higher for ordinary shoppers.

High street tax burden is 'costing jobs and pushing up prices', the BRC said in its findings.

Pubs, restaurants and shops pay the steepest effective rates despite being among the most visible employers in local communities.

The research adds fresh ammunition to calls for urgent business rates reform before more closures hit the high street.