UNRAVELLING BUDGET 2026: THE REALITY BEHIND THE BUSINESS RATES CUTS HEADLINES
Andrew Hulbert of Harris Lamb’s Business Rates team reviews Chancellor John Healey’s first Budget since taking office under Andy Burnham’s Premiership.
John Healey’s first Budget will likely hereafter be referred to as ‘The Breathing Space Budget’ courtesy of the steps taken to alleviate financial pressures on families as the cost-of-living crisis continues, but from a Business Rates advisor’s point of view, there were some takeouts for business owners, in particular those in the retail, hospitality and leisure sectors.
There’s always huge speculation ahead of a Budget, but in reality, the Chancellor has offered a mixed bag of assistance to smaller Retail Hospitality and Leisure properties.
As always, we’ll be inundated in the coming days with reports and opinions, so in an attempt to unravel some of the key messages and the short- and long-term impact for businesses, I’ve summarised the major points as follows:
Business Rates Support for Retail, Hospitality and Leisure
One of the most significant announcements for high street businesses is the decision to freeze business rates for the retail, hospitality and leisure sectors for the next two years, providing greater certainty for occupiers facing ongoing cost pressures. This freeze is subject to inflationary rises each year.
In addition, the threshold at which these businesses begin paying business rates has increased from £12,000 to £18,000 rateable value, meaning thousands of qualifying smaller businesses will see reduced liability or no liability at all.
For landlords and investors, the measure should help support tenant retention and maintain occupancy levels across town centres and leisure destinations.
An EXTRA 20% relief will also be granted to pubs, live music venues and social clubs, this will broaden the gap between hotels and pubs at a time when the VO have claimed they wish to clear the confusion between the two and the way they are valued for rating.
The Chancellor also wishes to carve out adult gaming centres and vape shops from the RHL sector and remove all business rate reliefs from these hereditaments.
Devolution and Regional Growth
The Government has reinforced its commitment to regional economic growth through further devolution of funding and decision-making powers. Plans to allow greater local retention of business rates, alongside additional fiscal powers for mayoral authorities, are intended to accelerate investment in infrastructure, regeneration and employment growth.
2027/2028 Multiplier Confirmed
Along with the headlines announced by the Chancellor, the Treasury has also confirmed the new multipliers for the upcoming financial year, which will represent an increase for ratepayers, with the exception of qualifying retail, leisure and hospitality properties who will benefit from a two-year freeze.
| Multiplier Category | 2026/27 | 2027/28 | Change |
| Small Business RHL (<£51k RV) | 38.2p | 39.7p | +1.5p |
| Standard RHL (£51k-£499,999 RV) | 43.0p | 44.7p | +1.7p |
| Small Business Non-RHL (<£51k RV) | 43.2p | 44.7p | +1.5p |
| Standard Non-RHL (£51k-£499,999 RV) | 48.0p | 49.7p | +1.7p |
| High Value Multiplier (£500k+ RV) | 50.8p | 52.5p | +1.7p |
The coming weeks and months will provide further clarity on those businesses that will benefit from these announcements, and there is sure to be significant scrutiny around the increased powers being presented to local and regional authorities.
As always, myself and the team will thoroughly explore the small print further to today’s speech before sharing insight, guidance and support to our client portfolio.
For further advice, contact the team at businessrates@harrislamb.com