Tax rise will see shops increase prices Shops across the UK will be hit by increases of over 5 per cent in so-called business rates this April. Business rates are a tax on non-domestic properties, such as shops and restaurants, that is levied by local authorities. The Association of Convenience Stores (ACS), which represents the UK's 35,500 corner shops and convenience stores, said that the 5.6 per cent increase will cost retailers £350 million. Almost half of shopkeepers see action to reduce business rates as one of the top two priorities for the Chancellor in the upcoming Budget. A similar number, 37 per cent, said that business rate increases are obstructing growth in their business. The Government has already announced a scheme that will allow small companies to defer paying 60 per cent of the rates for two years. However the ACS said that this "does not go far enough."