Big Yellow warns annual business rates bill to jump by £1.8m post Budget

Self-storage company Big Yellow has warned its annual business rates bill will jump by £1.8 million next year following measures announced in the Budget.

The business said it will be affected by an upcoming tax shake-up, which will see properties worth more than £500,000 taxed at higher rates.

Big Yellow said 27 of its stores will be affected by the change.

It told investors that it was expecting its annual rates bill for the next tax year, beginning in April 2026, to be almost £23 million, up by £1.8 million from its current bill.

The firm said it was appealing the rateable values of some of its stores.

Big Yellow operates self-storage units from 111 locations in England, Scotland and Wales.

In last week’s autumn Budget, Chancellor Rachel Reeves confirmed that a new business rates system will be introduced from the next financial year.

This will see rates multipliers lowered for retail, hospitality and leisure firms – funded by higher rates on larger commercial properties, including warehouses.It also means that firms with larger premises, like storage companies and supermarkets, will be hit with a property tax rise.

The Treasury said the move was designed to “rebalance the business rates system” and help smaller firms by putting more of the tax burden onto bigger operators.

Big Yellow has been the subject of a takeover approach from investment firm Blackstone, which confirmed in October that it was considering making an offer.

But it said one of its considerations was the potential impact of the UK Budget on the self-storage sector.

Blackstone is thought to be contemplating abandoning a potential bid for Big Yellow ahead of a December 8 deadline to make a formal offer, Sky News reported on Tuesday.

Shares in Big Yellow fell on Tuesday and were down by about 1% on Wednesday morning.