Autumn Budget 2026: Business Rates Relief Brings Good News for Small Businesses

Could your business pay less in business rates from April 2027?

The UK Autumn Budget 2026 has brought some welcome news for small businesses across England. The government has announced an increase in Small Business Rate Relief thresholds, offering additional financial support to eligible businesses in the retail, hospitality and leisure sectors.

With many businesses facing rising operating costs, including rent, wages and energy bills, the announcement could provide much-needed relief for local shops, restaurants, cafés and other high street businesses.

What Has Changed?

From 1 April 2027, the government will increase the Small Business Rate Relief thresholds for qualifying retail, hospitality and leisure properties in England.

The key changes include:

• 100% Business Rates Relief: The rateable value threshold will increase from £12,000 to £18,000.
• Partial Business Rates Relief: The upper threshold for tapered relief will increase from £15,000 to £21,000.
• Support for 70,000 Businesses: The government estimates that approximately 70,000 additional businesses will no longer have to pay business rates.
• Two-Year Protection: Eligible businesses in these sectors will benefit from a real-terms freeze on business rates bills for 2027–28 and 2028–29.

These changes aim to reduce financial pressure on smaller businesses and provide greater certainty when planning for the future.

What Does This Mean for Small Business Owners?

For qualifying businesses, the increased thresholds could mean lower business rates bills or, in some cases, no business rates to pay at all.

This could free up funds to manage everyday expenses, invest in equipment, support employees or grow the business.

However, eligibility will depend on factors including the property’s rateable value, business type and other applicable relief conditions.

What Should Businesses Do Next?

Although the changes will not take effect until April 2027, business owners should start preparing now.

Reviewing your property’s rateable value, checking your eligibility and understanding how the new thresholds may affect your costs can help you plan ahead.