New relief thresholds, increased support for hospitality and changes to business rates appeals are among the measures announced for England.
The Autumn Budget 2026 has confirmed a series of business rates reforms, with changes affecting retail, hospitality and leisure properties, pubs, live music venues and businesses considering appeals against their rateable values.
Among the headline announcements are an increase in Small Business Rates Relief thresholds for qualifying retail, hospitality and leisure properties, additional support for pubs and live music venues, and a two-year cap on certain business rates bill increases.
Most of the changes will take effect from 1 April 2027, although some measures will require further legislation or consultation.
Small Business Rates Relief Expanded for Retail, Hospitality and Leisure
One of the most significant announcements is the expansion of Small Business Rates Relief (SBRR) for qualifying retail, hospitality and leisure (RHL) properties in England.
From 1 April 2027, the Government will increase the rateable value thresholds. This means qualifying properties with rateable values between £12,000 and £18,000 could become eligible for full relief, while those between £18,000 and £21,000 could receive a partial reduction.
However, the expanded thresholds apply specifically to qualifying retail, hospitality and leisure properties, rather than all commercial premises. Eligibility will also depend on the applicable scheme rules, including the circumstances of businesses occupying multiple properties.
Source: HM Treasury – Budget 2026: Small Business Rates Relief thresholds
Pubs and Live Music Venues to Receive 35% Business Rates Relief
The Government has also confirmed increased business rates support for eligible pubs, social clubs and live music venues in England. From 1 April 2027, the relief will increase by 20 percentage points, from 15% to 35%.
The increased reduction will apply to qualifying pubs, social clubs and live music venues, excluding the very largest live music venues.
The Government has clarified that venues with a rateable value of £1 million or more will not qualify for the increased 35% relief. Instead, these larger venues will continue to benefit from the previously announced 15% relief for 2026/27 and a real-terms freeze on business rates bills in 2027/28 and 2028/29.
Source: HM Treasury – Budget 2026: Relief for pubs, social clubs and live music venues
Business Rates Bill Increases Capped by Inflation for Two Years
The Budget also introduces further protection against rising business rates bills for qualifying retail, hospitality and leisure properties.
For the 2027/28 and 2028/29 financial years, the Government will cap increases in qualifying Retail, Hospitality and Leisure business rates bills at the rate of Consumer Prices Index (CPI) inflation. This measure is intended to prevent eligible businesses from facing above-inflation increases during the two-year period.
The cap will not apply to increases in rateable value resulting from property improvements or to increases arising from the loss of certain other reliefs, including improvement relief and hardship relief after 1 April 2026.
For businesses planning property improvements, extensions or changes in occupation, understanding how these exceptions apply will be important when forecasting future business rates liabilities.
Source: HM Treasury – Budget 2026: Inflation-linked bill caps for RHL properties
Further Support for Businesses Facing Rising Bills
The Government has confirmed two additional measures relating to transitional support.
Supporting Small Business scheme extended
From 1 April 2027, the 2026 Supporting Small Business scheme will be extended for one year to businesses that previously received support under the 2023 scheme.
This will provide continued protection for qualifying businesses facing increases in their business rates liabilities.
Transitional Relief Supplement extended
The Government will also extend the existing 1p Transitional Relief Supplement for two years from April 2027.
The supplement will continue to apply to properties whose bill increases would otherwise fall below the limits established under Transitional Relief and the Supporting Small Business scheme.
These measures demonstrate the importance of understanding how multipliers, reliefs and transitional arrangements interact when calculating a property's final business rates bill.
Source: HM Treasury – Budget 2026: Supporting Small Business and Transitional Relief Supplement
Vape Shops and Adult Gaming Centres to Lose Certain Benefits
The Budget also confirms changes to which businesses can access the lower retail, hospitality and leisure multipliers.
From April 2027:
Adult Gaming Centres will no longer qualify for the lower RHL multipliers.
Vape shops will no longer qualify for the lower RHL multipliers or Small Business Rates Relief.
For affected occupiers, these exclusions could increase future business rates liabilities.
Businesses operating these property types should review their current rates position and prepare for the changes ahead of April 2027.
Source: HM Treasury – Budget 2026: Changes to relief eligibility
Government Announces Stronger Business Rates Anti-Avoidance Measures
The Government intends to introduce a General Anti-Avoidance Rule (GAAR) for business rates in England, following consultation on its design and implementation.
The measure is intended to address arrangements designed to avoid business rates liabilities.
From April 2027, the Government will also reimburse local authorities for external legal costs incurred in unsuccessful cases challenging business rates avoidance arrangements where a point of law is being tested.
These announcements signal a continued focus on business rates compliance and enforcement. It remains important to distinguish between legitimate opportunities to reduce an inaccurate assessment or claim an available relief and arrangements that could be challenged as avoidance.
Source: HM Treasury – Budget 2026: Business rates anti-avoidance measures
Wider Business Rates Reforms and Investment
The Budget includes further developments affecting the wider business rates system.
The Government is publishing its response to the Business Rates and Investment: Call for Evidence, which examined how the current system influences investment decisions in England.
It has also announced plans to legislate for the Mayor of London to establish a successor to the Elizabeth Line Business Rates Supplement, with specified arrangements for the required ballot.
While these measures may not immediately change every ratepayer's bill, they could influence future business rates policy, investment decisions and regional infrastructure funding.
Source: HM Treasury – Budget 2026: Business rates and investment
What Does the Autumn Budget Mean for Your Business Rates?
The Autumn Budget 2026 brings a mixture of additional relief, protection against rising bills and changes to eligibility.
For smaller retail, hospitality and leisure occupiers, the expanded Small Business Rates Relief thresholds could be particularly significant.
Pubs, social clubs and live music venues may also benefit from increased support, while the removal of Valuation Tribunal appeal fees could make formal challenges less costly.
However, not every property will benefit from every measure.
The amount a business pays will continue to depend on several factors, including its rateable value, property use, applicable multiplier, eligibility for relief and any transitional arrangements.
Could You Be Paying Too Much in Business Rates?
At Commercial Property Advisors (CPA), we specialise in helping you understand your business rates liabilities and identify potential opportunities for savings.
If you're unsure whether your property is accurately assessed or whether you're receiving the correct reliefs, we can help you establish your position.
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Simply provide a few details about your property and, if available, upload your latest business rates bill. This allows our team to review your current assessment and identify any opportunities to reduce your business rates liability.
There's no obligation to proceed, and we carry out a full risk assessment before taking any action to help protect your position.
