Thousands of high street businesses are set to benefit from changes to business rates announced in today’s Autumn Budget by Chancellor John Healey MP.
But while the measures offer welcome support for smaller occupiers on high streets across England, the case for fundamental reform of the business rates system remains.
So, what was announced today on business rates, and what could it mean for occupiers of commercial property? Adam Barnfield, Partner and Head of Business Rates Advice at Vail Williams, explores.
What business rates changes have been announced?
From 1 April 2027, the Small Business Rate Relief (SBRR) threshold for qualifying retail, hospitality and leisure (RHL) properties in England will rise from £12,000 to £18,000 for full relief. Relief will then taper evenly to zero at £21,000, up from £15,000.
These thresholds refer to rateable values, rather than annual business rates bills, and will apply until 31 March 2029, with a review at the 2029 revaluation.
The Government says this will take around 70,000 more businesses out of paying business rates altogether. The package will be funded in part through higher tax on higher-risk machine games, action on VAT non-compliance by online marketplace sellers and an extension of the Transitional Relief Supplement.
For eligible businesses, the change could release money to invest in their premises, support recruitment or provide greater financial resilience.
For businesses occupying more than one property, the aggregate rateable value threshold used when deciding whether additional properties can be disregarded for SBRR on the main property will rise to £29,999 across England until 31 March 2029. This does not remove the other eligibility conditions.
However, as ever, the devil will be in the detail, as Adam explains:
“Businesses will need to avoid assuming that a rateable value below £18,000 automatically guarantees a business rates saving. The full eligibility criteria, treatment of businesses occupying multiple properties and implementation arrangements will need to be checked first against the published guidance.”
What does a real-terms business rates freeze mean?
Eligible RHL properties will have increases in their business rates bills capped at CPI inflation in 2027/28 and 2028/29, providing a real-terms freeze until 31 March 2029.
This does not mean bills will remain unchanged in pounds and pence. The protection does not cover increases in rateable value arising from improvements, or the loss of other reliefs such as improvement relief or hardship relief after 1 April 2026.
There is no rateable value ceiling for qualifying RHL properties to benefit from the freeze. Eligibility will be assessed on 1 April each year, and properties vacant on that date will not qualify for that year. Occupiers should therefore check the position for each property before forecasting their bills.
How does this relate to support for pubs and music venues?
The Budget reaffirmed the additional 20 percentage points of relief for qualifying pubs, social clubs and all but the largest live music venues in 2027/28 and 2028/29. Added to the existing 15% relief, this brings total relief to 35%.
Live music venues with a rateable value of £1 million or more will retain 15% relief, rather than receive the increase to 35%. Operators should distinguish this targeted support from the higher SBRR thresholds and the wider real-terms bill freeze.
It will be important for operators potentially benefiting from more than one measure to understand how the support fits together.
What are the business rates multipliers for 2027/28?
The multiplier is the rate applied to a property’s rateable value as the starting point for calculating its business rates bill. The announced multipliers for England for 2027/28 are:
Multiplier | 2027/28 |
Standard non-domestic rating | 49.7p |
Small business non-domestic rating | 44.7p |
Standard retail, hospitality and leisure | 44.7p |
Small business retail, hospitality and leisure | 39.7p |
High-value non-domestic rating | 52.5p |
Across the five multipliers, the average percentage increase in the rates multiplier from 2026/27 to 2027/28 is approximately 3.65%.
So, although a ‘freeze’ has been announced, it is a real-terms freeze for qualifying RHL properties, so cash bills can still rise with inflation. This real-term freeze will be partially funded by the extension to the 1p Transitional Relief Supplement.
Higher multipliers increase liabilities before reliefs where rateable values are unchanged. The amount actually payable will depend on the applicable reliefs, caps and supplement. The average multiplier increase should not be treated as a forecast increase for every occupier’s bill.
These figures are the published multipliers, before the separate 1p Transitional Relief Supplement where payable. The supplement has been extended for 2027/28 and 2028/29 to help fund protection for businesses facing larger increases. The applicable multiplier, supplement, transitional protection and other reliefs must all be considered when calculating an individual bill.
What other changes should occupiers know about?
Businesses that moved from the 2023 Supporting Small Business scheme into the 2026 scheme will receive a further year of support, extending that protection to 31 March 2028.
From April 2027, vape shops will lose access to SBRR and the RHL multipliers. Adult gaming centres will also lose access to the RHL multipliers and the enhanced RHL support, but eligible premises can still claim SBRR on the existing £12,000 and £15,000 thresholds. Further detail on the definitions will follow.
The Government also plans a General Anti-Avoidance Rule for business rates, following consultation with businesses and local partners this winter.
From 1 April 2027, it will reimburse councils’ reasonable external legal costs when they lose cases testing a point of law, subject to forthcoming guidance, and Valuation Tribunal fees will also be scrapped, removing a layer of admin in the appeal process for occupiers, and opening up the door to pursuing business rates appeals further.
What about local control of business rates?
Alongside these changes for occupiers, the Government intends to increase the share of business rates retained locally, with the intention of moving to 100% local retention.
From April 2027, mayors will receive a share of business rates income in exchange for specified funding streams, alongside a permanent 20% share of growth in their areas. This is not a commitment to allocate 20% of all business rates revenue to mayors.
Greater local retention of business rates revenues could strengthen the connection between business growth and investment in the places where that growth happens.
“Done well, greater local retention could support improvements to town centres, transport and the wider environment in which businesses operate. However, there is a risk that areas with stronger business rates tax bases, such as London, will benefit disproportionately, widening existing regional inequalities,” added Adam.
Welcome relief, but the system still needs reform
Today’s business rates announcements are a welcome positive step. For an independent retailer, café or leisure operator, a reduction in business rates could make a meaningful difference.
Yet raising a threshold only addresses part of the problem, as Adam discusses:
“Businesses above the eligibility limits can face similar pressures, and the whole system has become so complex, that businesses can struggle to navigate this complex property tax.”
Wider reform should make liabilities easier to understand and forecast, provide a straightforward route to correcting inaccurate assessments, and avoid creating unnecessary barriers when businesses expand.
The cumulative complexity of sector-specific support, different multipliers and overlapping reliefs needs to be addressed.
“Businesses need to understand their likely property costs before committing to a lease, opening another location or investing in their premises. But when will the Government listen?”
What should businesses do now?
The immediate priority is to establish how the announcements apply to each property. The Government’s technical annex sets out the proposed changes, but detailed regulations and guidance are due in the coming weeks and should be checked once published.
Businesses should review their rateable values, check which reliefs they currently receive and assess how any changes could affect their budgets. Those planning a relocation, expansion or lease renewal should consider business rates alongside rent and other occupancy costs.
“Today’s Budget offers some welcome support for parts of the high street. The next test will be whether this Government can turn targeted relief into a clearer, fairer system that supports businesses as they grow, and returns a sense of hope back to the UK business community too,” concluded Adam.
This article reflects the announcements and technical information published on 28 October 2026 and relates to England. Detailed regulations and guidance are still to follow. It provides general information and should not be relied upon as advice on an individual property.
