Rugby Borough Council supports retail, hospitality and leisure businesses with up to 50 per cent business rates relief subsidy

The one-year subsidy is aimed at independent town centre businesses in the retail, hospitality and leisure industries with a rateable value of £51,000 or less. In total, the government and Rugby Borough Council subsidies could equate to up to 57.5 per cent tax relief, depending on how long a business has traded within the town centre. An estimated 107 businesses are estimated to be eligible to benefit from the subsidy.
 
It follows the government’s Retail, Hospitality and Leisure (RHL) sector business rate relief which has been applied since 2020 but is being withdrawn over the next few years. In 2025-26 the government relief is reducing from 75 per cent to 40 per cent. The maximum amount of subsidy will be up to 50 per cent of the value of the relief that is being withdrawn, and will apply in the 2025-26 financial year. 
 
Cllr Michael Moran, Leader of Rugby Borough Council, 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.
 
“Following the proposal to adopt the government’s High Street Rental Auctions powers to bring empty units back into use, and the recent Love Rugby Festival that brought many visitors into the town centre, it’s clear that this council, under its new administration, is making small but determined steps in the right direction to help our town centre.  
 
“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.”
 
Cllr Jerry Roodhouse, Leader of the Liberal Democrat Group on Rugby Borough Council, said: "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."

The decision was made at the meeting of the Council held on 9 July 2025. 

Funding will be conditional 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 outside of the town centre area.