'It's just not sustainable': Leighton Buzzard and Woburn hit hard by business rates hike

The changes have affected thousands of high street shops and pubs across the UK – and stems from a decision made by the Labour government in its October 2024 budget.

Business rates, which are levied on all commercial properties, were cut by 75 per cent in 2022 to help traders in the wake of the pandemic – and although businesses have seen taxes increase since then, the sudden surge has left people claiming "it's just not sustainable".

However, HM Treasury says that the budget will protect business rates bills from inflation and that it has "extended relief at 40 per cent for 250,000 businesses until April 2026".

Anthony Smith, director and owner of Allframe in Market Square, Leighton Buzzard, claimed: "I have been looking at this going back a few years. After Covid-19, it was fantastic; we got looked after and wouldn't have been able to survive without the help.

"In 2023/24, the rates dropped from £281 per month to £147 – a 47 per cent decrease. Then it went up by ten per cent in 2024/25 to £162.

"But this year, it's gone from £162 to £412, around a 155 per cent increase.

"It's just not sustainable. I can't put my prices up for something I'm selling at £10, and ask people to pay £25 for that item.

"We'll obviously challenge it. It just doesn't seem a realistic increase to me."

Anthony explained that he can appeal through Central Bedfordshire Council, although it can be "quite a lengthy process" and he would still have to pay the business rates during this time. If the result is unsatisfactory, a complaint can be raised to the ombudsman.

He added: "I have run the shop in town for 40 years and we used to have our bins collected. I'm going back a long time ago, but we don't really get anything for our money now, no value.

"My home domestic rates are going up like everything else.

"We're in the luxury market; people don't need to have their pictures framed or buy gifts. But times are very difficult. People are coming into the shop and impulse buys you used to have – people are thinking about it.

"I'm harping back to when we were looked after during Covid. We've got to pay for it; I don't mind paying back, but they've got to be realistic with what they can charge in taxes."

Independent Central Bedfordshire Councillor, John Baker, cabinet member for finance, said: "I'm horrified at the size of increased business rates on enterprising small businesses.

"Local pubs and restaurants employ local people, keep money within communities, and provide the character that we enjoy in our villages and towns. I stand in solidarity with small businesses, and urge our MPs to 'think again' by reducing this blunt tax on enterprise."

Thanks to research undertaken by Councillor Baker and the Leighton Buzzard Lib Dems – Cllrs Emma Holland-Lindsay, Chris Leaman and Shaun Roberts – data has revealed that:

> The Black Lion pub has seen its business rates increase from £7,448 to £24,309 – an increase of 226 per cent.

> Buzzard Blinds and Awnings has seen its business rates increase from £1,634 to £4281 – an increase of 162 per cent.

> Allframe has seen its business rates increase from £1,621 to £4,117 – an increase of 154 per cent.

> Harrisons Jewellers has seen its business rates increase from £1,248 to £2,994 – an increase of 140 per cent.

And in Woburn:

> Woburn Mosaic: £841 in 2024/25 to £2,377 in 2025/26 (183 per cent).

> Woburn Hotel: £20,065 to £48,951 (144 per cent).

> Zoohause, Woburn: £4,896 to £11,751 (140 per cent).

> Longs Inn, Woburn: £1,871 to £4,491 (140 per cent).

Councillor Baker added: "I visited The Green Man in Eversholt, the Woburn Mosaic and other businesses. I heard stories of frustration with ever increasing costs on business, whether it’s energy, rates, spiralling food costs, or above inflation increases in the minimum wage, coupled with a squeeze on consumer spending.

"I was reminded that, the profit on a pint is not huge, so thousands of extra pints must be sold to fund additional business rates."

Liberal Democrat Central Bedfordshire Councillor, Emma Holland-Lindsay (Leighton Linslade South), claimed: “These shocking hikes in business rates are absolutely crippling to our high street businesses that are the backbone of our town.

“Our local businesses have already been hit by Labour’s jobs tax, and now they are being hit by enormous business rates rises.”

Cllr Holland-Lindsay is now calling on Leighton Buzzard and Dunstable’s Labour MP, Alex Mayer, to “oppose these rises” and “ask the government to think again.”

Ms Mayer said: “For too long, the business rates system has been working against high streets up and down the country.

“I voted for legislation – now law – that sets us on the path to, for the first time, permanently cutting business rates for retail, hospitality and leisure properties from 2026, helping to level the playing field between them and online or out-of-town firms. This is the start of delivering the manifest commitment I stood on to reform business rates and help the high street.”

A HM Treasury spokesman, said: “We delivered a once-in-a-parliament budget that took necessary decisions on tax to stabilise the public finances, including the NHS which has now seen waiting lists fall five months in a row.

“Without our action, business rates relief for retail, hospitality and leisure would have ended completely in April this year.

"Instead, we have protected business rates bills from inflation and extended relief at 40 per cent for 250,000 businesses until April 2026 when we introduce our new, permanent lower rate for retail, hospitality and leisure to kick off our reform of the business rates system.”