Key facts
- Small Business Rate Relief threshold raised to £18,000.
- 70,000 businesses will not pay business rates.
- Rates frozen in real terms for other retail, hospitality, and leisure businesses.
UK finance minister John Healey announced on Wednesday an increase in the threshold for Small Business Rate Relief for retail, hospitality, and leisure businesses from £12,000 to £18,000. Healey stated in his budget speech to parliament that this move will mean 70,000 businesses will no longer pay business rates, a property tax on commercial properties. He added that other businesses in these sectors would see their rates frozen in real terms. Prime Minister Andy Burnham had previously indicated in July a plan to lower business rates for pubs, clubs, and live music venues by 20% starting April 2027.