Small businesses could delay investment and recruitment because of uncertainty surrounding business rates, according to a UK logistics company warning that rising property costs are putting pressure on firms seeking to expand.

Andrew Cusworth, managing director of Buckle Shipping, said businesses operating from warehouses and other commercial premises needed greater certainty over future tax bills to make long-term decisions.

His warning follows changes to the business rates system in England from April 2026, alongside the latest revaluation of commercial properties in England and Wales.

The revaluation updates the rateable values of more than 2mn properties to reflect changes in the commercial property market. Although higher valuations do not automatically result in equivalent increases in tax bills, they can alter the costs faced by individual businesses.

“For many small and medium-sized businesses, the challenge is not one single cost increase, it is the cumulative effect of rising overheads across the board,” Cusworth said.

“Business rates remain a significant expense for firms operating from commercial premises, and when those fixed costs become harder to predict, it can affect decisions around investment, recruitment and growth.”

The government has introduced lower business rates multipliers for qualifying retail, hospitality and leisure premises in England, funded partly through higher rates on properties valued at £500,000 or more.

A £4.3bn transitional support package over three years is intended to cushion eligible businesses from sharp increases following the revaluation.

However, companies outside the sectors benefiting from lower multipliers face continued pressure from property costs, alongside higher wages, energy bills and other operating expenses.

Cusworth said Buckle Shipping's warehouse, which opened three years ago, was still developing its customer base and investing in growth. Additional fixed costs could reduce the resources available for expansion.

“Companies need stability and predictability when making long-term decisions,” he said.

“Whether it's taking on additional space, investing in new facilities or recruiting more staff, confidence in future operating costs is an important factor.”

The debate over business rates has also raised questions about whether further relief for high street businesses could shift more of the burden towards warehouses and other commercial properties.

For logistics and distribution companies, where substantial physical premises are essential, such changes could influence decisions about new facilities and employment.

Cusworth argued that greater predictability would help businesses commit capital rather than postpone expansion.

The concerns highlight a broader challenge for policymakers: providing targeted relief to struggling sectors without discouraging investment elsewhere in the economy.