All change for business rates strategy – again? Prime minister elect Andy Burnham is planning yet another overall of the tax. Will it work? Will the plans survive unchanged? And what else can small firm do manage the impact of these bills on cash flow and investment capability?

The proposals from Burnham point towards another significant shakeup of the business rates system. Such reform would come not long after a major reshaping of the tax introduced earlier this year, the reaction to which has been decidedly mixed. While there has been lower rates for some small firms, others are facing an increase in bills.

How will the new business rates reform impact small firms?

The ongoing concern is perhaps why the next prime minister has announced details of yet another restructuring. At the heart of the new proposals is a plan to raise the threshold for 100% Small Business Rates Relief by 50%, which would mean that more small businesses qualify for the exemption. An increase in property taxes for larger firms, in particular large warehouses, would help cover the costs.

As to the response to the latest proposals, the new reform plans is certainly sparking debate and making headlines. With regard to small firms, further help with regard to business rates would certainly be welcomed, with the current tax framework, including business rates, increasing coming under fire for being unworkable. According to the Confederation of British Industry, almost a third of businesses have said that the tax system is having a major impact on investment, causing them to cancel, reduce or delay spending.

However, while there is small business sector positivity, there are also some notable caveats. The cost of the reform is already a talking point and such is the price tag that the likelihood of the plans making it through to the implementation stage without change has to be questioned. Also, there is a matter of the time frame – there is a significant distance between proposals and policy, and many small businesses can’t afford to wait.

How alternative lenders can help with impact of business rates bills

Given the current market climate and the reception that the last business rates review received, it is easy to see why further change is being proposed. But there are no guarantees and change takes time. From a small business perspective, the new plans are encouraging but in the meantime the bills have to be paid.

The bottom line is that these firms have to find a way to manage the impact on cash flow. Access to finance is essential, but traditional lenders are continuing to prove cautious with regard to small business lending. This is where alternative lenders can help.

Alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small business finance options for managing tax bills in H2 2026

While the latest proposals to restructure the business rates landscape offers some small businesses the prospect of reduced bills, nothing is set in stone, and nothing is going to happen overnight.

Whatever the size of the bills, small firms have to be able to manage the impact on cashflow and put themselves in a position where they are able to both meet their obligations and invest in essential development.

To do this, access to finance is pivotal, and with legacy lenders remaining cautious, it is important that key decision-makers are aware of all the finance options available to them. This includes the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk