October Budget 2026: What Could Change for Business Rates?

Business rates are expected to feature in the Government’s first Budget under Prime Minister Andy Burnham on 28 October, with further reform already promised.

In its July announcement on support for pubs, clubs and live music venues, the Government confirmed that it would return to the wider business rates system at the Budget, specifically identifying Small Business Rates Relief (SBRR) as an area for further reform.

With businesses adjusting to changes in their rateable value and liability under the 2026 Rating List, attention is turning to what could come next and how different sectors could be affected.

Small Business Rates Relief is back on the agenda

Under the current system in England, eligible businesses occupying a single property with an RV of £12,000 or below pay no business rates. Relief then tapers between £12,001 and £15,000. Source: GOV.UK, Small Business Rate Relief.

The Government has specifically named SBRR as an area it intends to revisit at the Budget, although it has not yet confirmed what will change.

That leaves several possibilities, including changes to the thresholds or wider eligibility. For smaller businesses, any adjustment could determine whether they continue to pay no business rates, receive partial relief or become liable for a larger bill.

More support for pubs and local businesses

In July, the Government announced that from April 2027, pubs, social clubs and qualifying live music venues will receive a 20% reduction in their business rates bills. Nearly 32,000 properties are expected to benefit, with the typical pub estimated to save around £1,100 in the first year. Source: HM Treasury and 10 Downing Street, July 2026.

This builds on the 15% business rates relief currently available to eligible pubs and live music venues during 2026/27.

There are still details to come. The Government has confirmed that the largest live music venues will not qualify for the new 20% reduction, with further details due to be set out at the Budget.

How could further support be funded?

The Government has said the additional support for pubs, clubs and live music venues will be fully funded. As part of this, it plans to review reliefs available to businesses it considers do not make a positive contribution to local communities, specifically citing vape shops.

This follows the changes introduced in April 2026, when qualifying retail, hospitality and leisure properties with RVs below £500,000 moved onto permanently lower multipliers. Those lower rates are partly funded through the higher multiplier applying to the most valuable properties.

Taken together, this suggests business rates policy is becoming increasingly targeted, with the system being used to provide greater support to particular businesses and sectors.

What should businesses watch on 28 October?

For businesses, the important details will be the thresholds and eligibility criteria behind any announcements.

Changes to SBRR could have a direct impact on smaller occupiers, while pubs and live music venues will want to understand the eligibility rules surrounding the new 20% reduction. Other businesses should also watch for any indication of where the Government intends to target future support and how it will be funded.

There is also a more fundamental question: will the Budget simply adjust existing reliefs, or mark the beginning of wider reform to the business rates system?

For now, much of the detail remains unknown. But with the Government having explicitly committed to returning to wider business rates reform at the Budget, 28 October will be an important date for ratepayers across England.

Could the October Budget change your business rates position?

With further business rates reform expected in the October Budget, businesses will be watching closely to see what the announcements mean for their properties and future costs.

Changes to reliefs, eligibility thresholds or the wider system could affect businesses differently depending on their property and current assessment.

If you're unsure where your business currently stands, CPA can review your business rates position now, helping you understand your existing liability and identify any opportunities that may already be available.

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We just need a few details about your property. If you’re able to upload your latest business rates bill, this will give us a clear view of your current assessment and allows us to begin straight away.

This initial review is simply to identify whether savings can be made and there is zero obligation.

We carry out a full risk assessment before taking any action, ensuring your position is protected, and our no-saving, no-fee service means we don’t charge any fees unless a saving is secured.