Yesterday’s Autumn Budget has introduced some business rates relief for retail, hospitality, and leisure sectors.
While any support is welcome, many businesses feel it does not go far enough to ease the pressures on high streets.
Working closely with businesses across the UK, I see the challenges they face every day. Even small increases in fixed costs can impact cash flow, particularly for independent shops, cafés, and service firms still recovering from years of disruption. Planning ahead and understanding the changes can make a real difference.
What the Budget Means
Small reductions for high-street businesses
From April 2026, RHL properties under £500,000 rateable value will benefit from slightly lower multipliers: 38.2p for small businesses and 43p for standard properties.
These reductions are welcome but do not offer the significant reset many high-street operators need.
Uncertainty for supermarkets and large stores
It is not yet clear if supermarkets will fall under the new high-value multiplier (50.8p for properties over £500,000). If they are included, costs could rise and may be passed on to customers, adding pressure to households already facing higher living costs.
Extra costs for mid-sized firms
A 1p supplement will apply to businesses not receiving Transitional Relief or Supporting Small Business (SSB). Intended to fund relief schemes, this could add another challenge for firms already working with tight margins.
Support for smaller firms
- Cap on SSB increases at £800 or the standard transitional cap.
- £1.3 billion support over three years for RHL businesses losing relief.
These measures help, but they remain temporary fixes rather than the structural reform many small and medium-sized businesses need.
Large properties face higher bills
Department stores, large pubs, and major leisure venues will pay more from 2026. This could slow investment and growth at a time when businesses are trying to expand and stabilise.
Opportunities for high-street regeneration
The government will consult on empty property rates. Businesses are encouraged to contribute their evidence. Modernising these rules could unlock redevelopment and help revive high streets.
Bright spots for creative and green sectors
- Film studios retain a 40% rates reduction until 2034.
- EV chargepoints and EV-only forecourts receive 10 years of full relief.
What businesses can do now
A message of support
High-street businesses are vital to communities. While this Budget provides some relief, there is still more to do. My advice is simple: start preparing early, ask questions, and seek guidance. With the right planning, businesses can manage the changes successfully and continue to thrive.
