As announced at the Autumn Budget 2026, the government is introducing a package of business rates measures to support high street businesses in England from 1 April 2027. The measures aim to reduce bills, protect jobs and support investment in the retail, hospitality and leisure (RHL) sectors.
The Small Business Rates Relief (SBRR) thresholds for qualifying RHL properties will increase. The threshold for 100% relief will rise from £12,000 to £18,000 rateable value, while the threshold for tapered relief will increase from £15,000 to £21,000. This is expected to bring around 70,000 additional high street businesses out of business rates.
Business rates bill increases for qualifying RHL properties in England will also be frozen in real terms for two years, covering 2027-28 and 2028-29, with increases capped at CPI inflation.
In addition, relief for pubs, social clubs and all but the largest live music venues will increase from 15% to 35% from April 2027. Live music venues with a rateable value of £1 million or more will continue to receive 15% relief.
The government will also extend the Supporting Small Business scheme for a further year and the 1p Transitional Relief Supplement for two years.
Adult Gaming Centres in England will no longer qualify for the RHL business rates multipliers from April 2027. Vape shops will also lose eligibility for the RHL multipliers and Small Business Rates Relief (SBRR). The changes aim to better target business rates relief towards businesses that support thriving high streets.
About this article
Imported from a third-party tax news feed and reviewed by the practice before publication. General guidance only - not personal advice.