East Yorkshire play cafe says business rates should be based on income, not building size

The cafe says rising costs and low footfall are hitting small town businesses

Author: Rebecca QuarmbyPublished 29th Oct 2026

A play cafe in East Yorkshire has said business rates should be based on how much money a business brings in, rather than the size of its building.

The comments come after the Chancellor announced the threshold for retail, hospitality and leisure businesses to be eligible for business rate relief will be extended from £12,000 to £18,000.

Mollie who owns Mollie's Play Paradise in Goole welcomed the move.

"I think it's absolutely amazing for everybody that benefits from this," Mollie said.

Business rates criticism

The cafe questioned why rates are still worked out on rateable value and the size of a property.

"Because actually it should be done on how much money your business is bringing in and how much money your business is potentially plugging into the community," the cafe said.

It said there are more factors than the size of a building and called the current system "a shame".

Rising costs and footfall

Mollie said small businesses are struggling with a range of costs, including business rates, insurance, utility bills and rent.

"I find it's really, really difficult keeping on top of all of the rising costs," the cafe said.

It also said fewer people are visiting small towns.

"And to be honest, footfall's not great now in small towns like ours," Mollie said.

The cafe said it would have liked some of the budget to be used to bring more footfall into town centres.

Free school meals

The cafe said it is providing free school meals to children in the community during half term.

It said it has had to budget for this, and that other local businesses have supported the idea.

"However, should it be down to small local businesses to provide free meals to the kids in the community? No, it shouldn't," Mollie said.

"It should be down to the government," Mollie said.