Urgent government action needed on business rate relief changes

The Leicestershire Market Towns group, of which the Borough Council is a member, is deeply concerned about the impact of the reduction in retail, hospitality and leisure relief (RHLR), which decreased from a 75% discount to a 40% discount from April 2025 and is set to become 0% from April 2026. In the Hinckley and Bosworth area alone, 885 businesses will be affected by this change, facing an average additional cost of £2,929 each. This equates to a total increase of £2,592,501 across the borough. 
  
Hinckley & Bosworth Council Leader Stuart Bray said: “We are seeing first-hand the anxiety and pressure these changes are causing for small business owners. The combination of reduced rate relief, rising costs, and changing consumer habits is putting the survival of our high street businesses at risk. Small independent businesses are the backbone of our local economy and community, and they need support now more than ever. 
 
“While business rates are collected by councils, the rules and rates are set by the UK government. I am therefore urging all local MPs and the Chancellor, Rachel Reeves, to reconsider these proposed changes and to back the work that the council and Hinckley BID are doing. Our events, frozen parking charges and other measures are key to our support for the Hinckley high street.” 
 
Paul Moss, owner of the Holiday Lounge travel agency which operates four local offices, is one of the contributors to a publication produced by the Market Towns group explaining how the proposed changes will affect their business. 
 
Mr Moss said: “We were paying £510 per month over our four offices but now have a bill of £1265 per month, a 148% increase. With National Insurance going up as well this is going to have a massive impact on retailers, and we need to be aware that companies locally will struggle.” 
 
Helen Crouch, Hinckley BID Manager, added: "Hinckley Town Centre Partnership and BID have been diligently working to support local businesses as best we can in light of the concerning future issues surrounding business rate increases. 
 
“Our commitment is to advocate for our community, ensuring that local voices are heard and that we navigate these challenges together.” 
 
The Borough Council’s Chief Executive Bill Cullen and Chair of the Leicestershire Market Towns group has written to all MPs in Leicestershire outlining these concerns and pressing for urgent government action. The letter calls for a fundamental reform of the business rates system, a permanent reduction in rates for the retail, hospitality and leisure sector, and policies that encourage growth and investment by smaller businesses. 

View the documents:

• Read the document produced by the Leicestershire Market Towns group: Business relief rate advocacy 2025
• Read the letter sent to local MPs