Business rates bill set to reach £1m a day for dealerships
UK dealerships are bracing for a business rates bill of £1m a day from next April, according to new calculations by automotive property consultancy Rapleys.
Its analysis has found that while the tax burden for retailers has gone up by £210m, or 39%, since 2023, the number of dealerships has actually decreased from 5,682 to 5,107 over the same period.
This means that fewer dealerships are paying more tax.
Nik Moore, head of business rates at Rapleys, said: “The publication of the 2026 Rating List for England and Wales [which underpins how much business rates tax property occupiers must pay] has highlighted a total rateable value rise for car showrooms of £210m, a rise of 39% from the last List in 2023. The sector now faces a total assessment of almost £750m and a liability approaching £1m per day.
“Curiously, the number of car showrooms has decreased from 5,682 to 5,107, but with a total value of £745,901,725, increased from £536,075,475, the higher burden is being shared by fewer properties. This is a 39% increase overall, but over 54% per dealership, which is completely unrealistic.
“This is compounding the very real pain that business rates are already causing the sector, at a time when costs are up across the board, particularly employers NI, the increases in minimum wage, the ongoing MEES/EPC requirements and a more subdued investment and lettings market.
“We expect there to be more consolidation and mergers in 2026, with efficiencies of operating costs top of the list for investors and occupiers alike.”
