Committee publication · Correspondence · 16 June 2026
Letter from the Post Office relating to business rates and the Government's High Street Strategy, 11 June 2026
From: Business and Trade Committee
Inquiry: Small business strategy
Summary
Post Office Limited writes to the Business and Trade Committee Chair requesting targeted business rates relief as part of the Government's forthcoming High Streets Strategy. The letter presents research showing post offices face a 200% average increase in business rates bills following the April 2026 revaluation and RHL relief withdrawal, with nearly £30 million additional costs across the network in 2026/27.
Key findings
- Post offices face average business rates bill increases from £1,233 to £3,700 (200% rise) in 2026/27, totalling nearly £30 million additional costs across the network compared to 2023/24
- Approximately 600 additional post offices will start paying rates following revaluation; rural offices face four-fold increases, urban offices three-fold increases
- Business rates account for over 10% of post offices' Gross Value Added compared with less than 5% for wider retail sector, despite post offices' £4.7 billion economic impact and £6.5 billion social value
- Post Office is increasing postmaster remuneration by £250 million by 2030 (£86 million delivered in first year) but identifies business rates as the most direct immediate pressure on branch profitability
- Wales and Northern Ireland already provide targeted business rates relief for post offices; Post Office requests extension across all four nations, representing only 0.1% of total business rates receipts
Tone
ProceduralTopics
business-rateshigh-streetsretaillocal-services
Key actors
Post Office Limited, Nigel Railton, Liam Byrne MP, Business and Trade Committee, Flint Global, London Economics
Notable line
“… the average post office business rates bill is estimated to rise from £1233 to £3,700 in 2026/27, which represents a 200% increase.”
Key Quotes
“… business rates was the single biggest issue that postmasters wanted us to raise with Government”
“… post offices pay a disproportionate share of business rates relative to their economic contribution. Business rates account for more than 10% of post offices' Gross Value Added, compared with less than 5% of the wider retail sector.”
“… business rates are now one of the most direct and immediate pressures affecting that profitability for many branches”
“… support for post offices would represent around 0.1% of total business rates receipts, while delivering direct benefits to frontline branches and the communities they serve”
Source · parliament.uk record ↗