Business Rates Hikes Could Force Closures, in Rural Areas and on High Streets.

The upcoming business rates changes, especially the 2026 revaluation and multiplier reforms, might affect shops in Evington Village like those on Main St, e.g., Bennetts Hardware, Nisa Local, Premier Stores, The Cedars and Eden Café.

Rateable values will change from 1 April 2026 with every commercial property getting a new rateable value based on rental market data as of April 2024. This includes all shops and Eden Café in Evington.

A higher rateable value usually means a higher business rates bill, but not always, because the way the bill is calculated also changes with new multipliers and reliefs.

New multipliers could be better for small shops as the government is introducing lower multipliers for retail, hospitality and leisure (RHL) properties with rateable values under £500,000, which many local shops fall into. That means the percentage of the rateable value paid could go down compared with before.

Meanwhile properties outside RHL or very large ones face higher multipliers. If an Evington Village shop qualifies as retail (which most do), it will likely get one of the lower retail multipliers, thus helping to soften the impact of any increase in the base value.

Even if a shop’s rateable value jumps a lot, the actual bill will increase more gradually, to avoid large sudden increases in bills, because the government will apply transitional relief that phases in higher charges over a few years.

Many small high-street shops with a low rateable value currently qualify for Small Business Rates Relief (SBRR), which reduces or even eliminates their rates bill.

Smaller shops, like Purple Bow Cakes, that have lower rateable values might benefit the most from the new retail multipliers and SBRR, possibly reducing their cost burden.

Larger premises could see less benefit or even an increase in bills if their rateable value jumps considerably. Fortunately, most of the retailers in Evington look as if they will be in the RHL category.

Some businesses though say they are in limbo following the government’s U-turn on business rate hikes while other city centre businesses are left with little cause for optimism.

Pubs in Leicester have voiced concerns over the delay in the final decisions being taken after plans to increase business rates from April were outlined by the Chancellor in this year’s Budget, but a sudden backtracking has left uncertainty.

According to the British Beer & Pub Association the average proposed increase was around 63 per cent for an average community pub. Currently though many businesses don’t know where they stand. It is possible that prices will have to go up.

The news comes after MP for Mid Leicestershire Peter Bedford (Conservative) called on the government to reverse all the promised business rate changes.

He said: “The Government’s economic decisions so far have caused growth to flatline, business confidence to fall and unemployment to skyrocket. The sad reality is unless these damaging policies are reversed, we will continue to see pubs, shops and hospitality businesses close for good.

Most Leicester businesses are not expected to benefit from any relief. James Clark, founder of Henshin, a vintage toy shop in Silver Street, commented that the £11,500 business rate he is expected to pay from April is over double his rent costs and he feels:

“It’s not fair that the relief might be offered to pubs only, especially considering we have just started.”

Ministers have not yet outlined exactly what the new rates for pubs will look like, but an official announcement is expected in the coming days.

In the meantime, shop owners should check their future rateable value on the GOV.UK VOA service before April 2026 — this gives an estimate of how their liability might change. They should review eligibility for Small Business Rates Relief and transitional schemes with Leicester City Council, consider appeals to their valuation if they think the rateable value is too high, especially if market rents locally have fallen or the property has unique issues.

(Source) Caitlin James (2026) Leicester pubs ‘don’t know where they stand’ amid business rate U-turn, Leicestershire Live, 11 Jan 2026