Wigan businesses could benefit as the budget locks in lower business rates for high street retail and leisure

After several years of rising costs and uncertainty, the confirmation that business rates for high street retail, hospitality and leisure will remain permanently lower has been welcomed by business groups across the country. For independent shops, cafes, salons, pubs, fitness studios and leisure venues across Wigan, this may mark one of the most significant boosts to operating conditions in some time.

The Budget confirmed that from 2026, the business rates multipliers for qualifying retail, hospitality and leisure properties will be set below the standard commercial rate. While the exact long-term savings will vary from business to business, the intention is clear. The Government wants to give smaller high street operators and local community businesses a better chance of surviving and competing in a market where online retailers and large chains have held a clear advantage for years.

For many owners in Wigan, the change cannot come soon enough. Local traders regularly speak about the pressure of overheads. Some of the most common challenges mentioned are the difficulty of absorbing higher staffing costs, increases in wholesale prices and the ongoing squeeze on consumer spending. Although rent, energy and supply costs remain a problem, business rates are one of the few costs that can be changed directly by government policy. That is why this latest decision matters so much to many shopkeepers and leisure providers in the town.

It also arrives at a time when high streets around the country are trying to recover footfall. Wigan is no exception. While parts of the town centre are seeing improvement, many traders say they need support to keep doors open long enough for wider regeneration efforts to take effect. Lower business rates will not solve every problem, but they can ease pressure enough to allow owners to invest in stock, refurbish tired premises or take a chance on extending opening hours. Some may even feel confident enough to hire new staff.

The Government has explained that the measure will be funded partly by a surcharge applied to high-value commercial properties. These are typically large-scale distribution centres, corporate offices and major retail sites with a rateable value above a certain threshold. In practical terms, smaller and medium-sized businesses are the ones set to feel the benefit, while the levy falls more heavily on the largest commercial sites. For many independent Wigan businesses, that is likely to be seen as a fairer balance.

At the same time, a transitional relief scheme is designed to ensure that businesses facing higher valuations after the next revaluation cycle do not see their bills jump sharply. This should provide stability over the next few years and help owners plan their finances with greater certainty. For family-owned firms and long-running local shops, predictability is often just as important as the relief itself.

Some business groups have reacted positively, saying that the Budget finally recognises the pressures on high street firms. Others argue that although the decision is helpful, it does not fully address the structural challenges faced by brick-and-mortar retail. A spokesperson for one national retail association described the package as a step in the right direction, adding the exact words that it was “a welcome sign of support for the high street”. That comment reflects a sense of cautious optimism rather than celebration, but it still shows that many in the sector believe the Government has taken a constructive step.

For Wigan business owners, the change may influence long-term decisions. Some who had been considering closing physical premises in favour of purely online operations may now rethink their plans. Lower overheads could make it viable to keep a presence in the town centre while still building out online sales. Others may see it as the right moment to expand into a second unit or invest in new services. For entrepreneurs thinking about starting a business, this shift may make Wigan’s high street a more appealing place to set up shop, especially in a climate of rising interest rates and cautious consumer spending.

Those researching what it means to run or establish a business under United Kingdom regulations will need to work out the specifics, particularly on compliance, employer obligations and market conditions.

The big question now is whether the change will have a noticeable impact on Wigan’s town centre in the months and years ahead. Reduced rates alone will not guarantee success, but they can free up cash that can be used to modernise premises, refresh stock or promote local services more effectively. It may also give owners confidence at a time when many have found it difficult to commit to long-term investment.

The changes will also play a role in how local residents experience their own high street. If more businesses remain open and new ones are encouraged to launch, footfall may recover. A busier high street usually leads to stronger community feeling, greater safety and more choice for shoppers. Local employment could rise too, since retail and leisure are significant employers in the Wigan area.

Budget 2025 will be remembered for many tax and spending decisions, but for Wigan’s high street, the commitment to permanently lower business rates stands out as one of the most meaningful. Although the full impact will take time to materialise, the policy offers a clearer message than most recent budgets. The Government wants to support independently owned high street businesses, and for the first time in several years, many Wigan owners feel the policy matches the promise.

If implemented smoothly and combined with improving economic conditions, the new rate structure could help Wigan’s high street regain confidence and perhaps spark new life into areas that have struggled in recent years. Business owners now have the chance to look ahead with a little more certainty, and for many, that alone will feel like progress.