Budget 2026: business rates relief boost for England’s shops and cafés
Published and checked on 29 October 2026. This article covers HM Treasury’s Budget announcements published on 28 October.
Running a shop, café or salon in England? Business rates deserve a fresh look when planning next year’s costs. The Budget announced targeted support for retail, hospitality and leisure (RHL) premises.
Which thresholds will change?
From 1 April 2027, qualifying RHL properties in England will have a £18,000 rateable-value threshold for 100% Small Business Rates Relief, up from £12,000. The upper threshold for tapered relief will rise from £15,000 to £21,000. These are property rateable values, not business turnover.
Can you reduce your current payment?
The announcement does not itself change your current bill. Check eligibility and how relief is applied with your local council. Existing rules also consider how many properties the business uses; the valuation figure alone is not enough.
Prepare before changing your forecast
Gather your latest business rates bill, property valuation details and a list of reliefs already applied. Note any plans for a second location, a move or a change in how you use the premises. Discuss these points before building a lower rates bill into your cash-flow forecast.
For planning purposes, prepare one scenario using your current bill and another using any future relief confirmed for your circumstances. This helps you make spending decisions with a clear view of what is established and what still needs checking.
Discuss your business plan with ZipTax
We can help you consider premises costs within your wider business budget and prepare questions for the council. Bring your latest bill and a short description of your business to a consultation.
