Businesses operating in retail, hospitality and leisure premises in England may benefit from additional business rates support announced in the Autumn Budget on 28 October 2026.
The measures are intended to limit the impact of business rates on qualifying premises, with particular attention given to smaller businesses and parts of the hospitality sector.
However, the support is not universal, and business owners should establish which measures apply to their particular premises before making assumptions about future costs.
Changes to relief thresholds
One of the principal announcements is an increase in the Small Business Rates Relief thresholds for qualifying retail, hospitality and leisure properties.
The government has announced that the threshold for full relief will increase to a rateable value of £18,000, while tapered relief will extend to £21,000.
These measures will provide additional support for qualifying smaller premises, although eligibility will depend on the applicable conditions, including the nature of the property and the type of business occupation.
The revised thresholds form part of the government’s business rates package for 2027-28.
Additional help for pubs and venues
The Budget also provides extra support for pubs, social clubs and most live music venues.
An additional 20% relief will be available to qualifying properties in 2027-28 and 2028-29, bringing the total support described in the government’s announcement to 35%.
The precise benefit for individual businesses will depend on their rateable values and eligibility for other reliefs.
The government has also announced measures intended to limit increases in business rates bills for qualifying retail, hospitality and leisure premises over the two years ending 31 March 2029.
Review the financial effect
Business rates can represent a significant fixed overhead, particularly for businesses operating from high-street premises where margins are already under pressure.
A reduction in rates may improve profitability, but owners should avoid treating the saving as additional disposable income without considering their wider financial position.
For example, a business may face increasing employment, energy or supplier costs that absorb some or all of the benefit.
It is therefore sensible to incorporate any confirmed rates relief into cash-flow forecasts and operating budgets, rather than considering the measure in isolation.
Businesses should also review whether they are claiming all existing reliefs for which they qualify and check that the information held by the relevant local authority is accurate.
The Budget announcements provide a useful opportunity to reassess property-related costs and consider whether existing premises remain appropriate for the business’s longer-term requirements.