OVER 100 businesses in Rugby town centre are set to benefit from a major subsidy of business rates during this financial year.
Councillors at Rugby Borough Council (RBC) have approved the subsidy, which will be funded from the council’s town centre reserve fund.
The one-year subsidy applies to independent town centre businesses in the retail, hospitality and leisure industries with a rateable value of £51,000 or less – an estimated 107 businesses.
Combined with a government subsidy, businesses could slash their rates by up to 57.5 per cent, depending on how long they have traded in the town centre.
The government’s Retail, Hospitality and Leisure (RHL) sector business rate relief, which began in 2020, is reducing from 75 per cent to 40 per cent this year. The maximum amount of RBC subsidy will be up to 50 per cent of the value of the relief that is being withdrawn, and will apply in the 2025-26 financial year.
Funding will depend on the business remaining in the town centre for the full year and will be applied in the form of a credit, which would be removed should the business close or relocate.
RBC leader Coun Michael Moran said: “This is a first important step in our regeneration plan for Rugby town centre. Many of our local businesses have lived through more than 20 years of promises of various plans and strategies to improve the look and feel of the town.
“I believe there needs to be a true partnership going forward and, before announcing investment plans to bring in new businesses to the town, it is important therefore we first recognise the faith and loyalty shown by our existing businesses.”
He said the council’s adoption of the government’s High Street Rental Auctions powers to bring empty units back into use was evidence that it was making ‘small but determined steps in the right direction’ to help the town centre.
He added: “This business rates subsidy will offer targeted and effective relief to town centre businesses for the rest of the financial year and, in tandem with further announcements to come, can look to improve confidence in our town.”
Coun Jerry Roodhouse, Leader of the Liberal Democrat Group on Rugby Borough Council, added: “This scheme has come about by joint working with the administration to help support local businesses in the town centre as well as Rugby-based independents.
“We must all remember to shop local as well.”
