The Autumn Budget – What Does it Mean for You?

How Does A Budget Work?

The budget is a statement made by the current chancellor to MPs in the House of Commons, presenting plans for the economy, such as changes to tax and spending.

The UK autumn budget is normally released in late October. Scotland and Wales release their draft budgets in December for debate and then their final budgets in February/March before the new tax year.

If the Budget Bill is passed through Parliament, the Government will start implementing the commitments set out in the budget in April.

Budget revisions are done to reflect changes in circumstances during the year, including responding to changes in UK spending that would affect any of the country’s budgets. There is usually a Spring and Autumn Budget revision. These amendments to the Budget Act must also be passed by parliament.

Regarding business rates, changes generally consist of relief amendments, anything to do with valuation processes such as revaluation dates, or anything that is already in business rates acts.

In the non-domestic rates bill last year, we have already seen changes such as the introduction of improvement relief, more frequent revaluations, and more obligations on ratepayers to provide the VOA with more information. This got royal ascent to be changed into the Non-Domestic Rating Act 2023.

England

It was good news for small businesses that don’t receive SBRR, as the government announced another freeze on the small multiplier. The standard multiplier will be uprated in April in line with September’s CPI figure (1.6%), increasing the multiplier from 54.6p to 55.5p.

The Retail, Hospitality, and Leisure (RHL) relief scheme will be extended for one year for 2025/26, retaining the existing eligibility criteria but reducing the level of relief to 40%, up to a cap of £110,000 per business.

In order to create a fairer business rates system and level the playing field for the high street, from 2026 it has been announced that the government intends to fund the new two retail and hospitality rates by applying a higher multiplier to all properties with a rateable value of £500,000 or above.

Private schools with charitable status will no longer receive discounts on business rates. They will now pay the full rates unless they primarily cater to students with special educational needs.

Wales

The Welsh Government has pledged that in order to support Welsh businesses, the non-domestic rates multiplier will be capped at 1% for 2025-2026. This is lower than the 1.7% that should have been used in line with CPI.

A debate on the regulations to set the multiplier is scheduled for February in Plenary. Subject to the approval of the regulations, the provisional multiplier for 2025‑26 is 0.568.

The Welsh government has committed to invest £78 million in the retail hospitality and leisure industry by continuing to provide 40% rates relief for the whole of the 2025-26 tax year. In total £335 million will be spent on non-domestic rates support in 2025-2026.

They have also committed to providing 100% registered childcare and have made this permanent.

Scotland

The Scottish budget has again frozen the basic property rate, which covers any rateable value under 51,000. The other two rates will rise to inflation. The intermediate property rate, which covers rateable values between 51,001 and 100,000 will increase to 55.4p. The higher property rate will be 56.8p and will be charged to properties over 100,000.

The Scottish government will be offering a 40 per cent relief in 2025-26 to properties in the hospitality sector (including Grassroots Music Venues with a capacity of up to 1,500) which are liable for the Basic Property Rate, properties with a rateable value of up to and including £51,000, capped at £110,000 per business.