Firms in North West Leicestershire have seen the biggest percentage increase in rates over the last five years - according to official figures.

Following the rise in small business rates in March, official figures have revealed the UK regions where the cost of renting a commercial property has skyrocketed since 2018.

The website Startups.co.uk says companies based in North West Leicestershire have been the most affected, with costs rising by a reported 29 per cent in this area.

BPI, an online auction platform for commercial assets, analysed data obtained from 155 local councils to discover the average annual increase in rates, and how the added costs might be impacting today's Small and Medium Enterprises.

According to their findings, business rates rose by an average of 18 per cent in 2022, compared to 2021.

SME profits have already slimmed during the cost of living crisis, as consumer appetite wanes.

Combined with the surge in energy prices, the business rate rise represents a substantial tax for many companies to factor into their reduced bottom lines.

After North West Leicestershire, Great Yarmouth Borough Council saw a 22.19 per cent increase across the same time period, followed by the London Borough of Lambeth with 19.27 per cent.

On average, SMEs in all 10 councils saw an increase of 16.62 per cent in business rate payments, representing an astonishing financial strain on SME cash flow reserves.

The uplift in business rate charges dealt another blow to the post-COVID high street.

UK town and city centres have been rapidly declining since consumers largely moved online during the pandemic, leading many big-name brands to go into administration.

The problem is also affecting SMEs. Government statistics show there were more than 105,000 UK business closures in Q1 2023, with just 79,000 new ones. This is the largest recorded net decrease on record.