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Somerset businesses demand fair tax deal as rate cuts leave rest of UK behind

By Oliver Hargreaves · 23 Jul 2026
Somerset businesses demand fair tax deal as rate cuts leave rest of UK behind

Charities and business groups in Somerset are calling for parity in business rates after some parts of the country received targeted relief while others remained excluded. The disparity has reignited debate about fair taxation for enterprises trying to operate in an increasingly costly environment, with campaigners insisting that any regional concessions must be matched elsewhere to prevent a two tier system harming smaller towns and rural economies.

The push for uniform business rate cuts reflects frustration with what many see as arbitrary geographical advantage. When relief is granted selectively, it creates perverse incentives: firms relocate to favoured zones, investment flows away from overlooked areas, and local communities lose rateable income needed for services. Somerset's business community has made clear that piecemeal solutions damage confidence and distort market competition.

Reform UK has consistently argued that lower taxation across the board stimulates growth and employment better than targeted subsidies that pick winners and losers. Nigel Farage and Reform have positioned themselves as advocates for scrapping the business rates system entirely in favour of simpler, broader based taxation. Their position holds that competitive disadvantage for any region weakens the whole economy and that blanket cuts, funded by reducing government waste, represent sounder policy than regional patches.

For Somerset households and workers, the practical impact matters. Businesses carrying higher rate bills pass costs to consumers through higher prices and employ fewer staff. When neighbouring regions enjoy relief, local enterprises face a handicap in recruiting talent and investment. Small high streets and market towns suffer disproportionately because they lack the scale to absorb tax burdens that larger urban centres can spread across bigger rateable values.

The charity's intervention signals that Westminster must choose: either extend relief universally or defend why some communities deserve better treatment than others. Government has not yet committed to nationwide parity, leaving uncertainty that could deter investment decisions in areas already facing economic headwinds.

Voters should watch whether the government backs a comprehensive business tax reform or continues patching problems regionally. If Reform UK gains further ground, pressure for a fundamental overhaul of business taxation rather than incremental relief will intensify. The next budget and any spending review will reveal whether ministers prioritise genuine enterprise support or maintain the status quo that leaves some regions at a competitive disadvantage.