Britain now bears the heaviest property tax burden among all major developed economies, with levies accounting for 3.7 per cent of GDP according to Ryan's annual business rates review.
The UK ranks ahead of both France and Canada, which each stand at 3.4 per cent, while Belgium and Luxembourg follow at 3.3 per cent.
Business rates alone are forecast to generate £37.1billion during the 2026-27 financial year, marking a sharp rise from £33.6billion in the previous period.
Labour implemented revalued rates across England, Wales and Scotland from April following the end of pandemic-era support measures and updated property valuations.
Property taxes now contribute just under 11 per cent of total Government revenues, making Britain the third-highest ranked advanced economy by this measure.
Close to 40,000 companies are currently awaiting responses after challenging revised business rates they believe to be inaccurate.
The valuation office agency, which operates under HM Revenue & Customs (HMRC), is expected to face a further surge of appeals from hospitality firms impacted by increased rateable values introduced this year.
Businesses are enduring an average wait of 11 months before appeals are considered, during which time they must continue paying the higher tax rate.
Britain faces highest property tax burden among developed economies as firms wait 18 months for business rates appeals
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Some firms are facing delays of up to 18 months before assessments are completed.
The prolonged waiting periods combined with rising levies have forced some smaller businesses to close altogether.
Experts expect the appeals backlog to worsen further as more hospitality operators submit objections over their revised rates.
Alex Probyn, practice leader at tax firm Ryan, said: "Business property is carrying a disproportionate share of the overall tax burden, and that is beginning to weigh heavily on investment, particularly in sectors that rely on physical assets and long-term capital."
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Property taxes altogether make up 3.7 per cent of the total economy
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Mr Probyn said the issue reflected a wider structural problem rather than solely concerns around valuation methods.
"Property taxes in the UK are the highest by international standards, and the system is designed in a way that continues to increase the yield over time.
"That creates a clear tension between the need to raise revenue and the need to support investment. That balance has to be addressed."
The report warned Britain's reliance on property tax revenues could make meaningful reform more difficult to implement.
Businesses are also contending with rising energy costs linked to the conflict in Iran, which began at the end of February.
The combination of higher business rates and increased energy bills has led many firms to scale back expansion plans.
Three in five companies have frozen hiring and investment plans as a result of mounting financial pressures.
The report said businesses dependent on physical premises and high levels of energy consumption face particularly difficult trading conditions.
Ryan warned Britain's public finances remain heavily exposed to any downturn in investment activity or falling real estate values, increasing pressure on both businesses and the Treasury.