Autumn Budget 2026 – Business Rates Relief Threshold Rises

Good news for eligible small businesses across Melton Mowbray and the surrounding areas.

The Chancellor’s Budget announcement today, 28 October 2026, has brought welcome news for parts of the commercial property sector, with an increase in the Small Business Rates Relief threshold for qualifying retail, hospitality and leisure properties in England.

From 1 April 2027, the rateable value threshold for 100% Small Business Rates Relief will increase from £12,000 to £18,000. The threshold for tapered relief will also rise from £15,000 to £21,000. The Government estimates that these changes will enable approximately 70,000 additional high-street businesses to pay no business rates at all.

What does this mean for local businesses?

For independent retailers, cafés, restaurants, hairdressers, beauty salons and other qualifying hospitality and leisure operators, this announcement could make a meaningful difference to ongoing business costs.

In a market where rent, utilities, staffing and operating expenses continue to influence decisions about taking on commercial premises, reduced business rates liabilities may help improve affordability and encourage more businesses to consider opening, relocating or expanding.

For Melton Mowbray, widely recognised as the Rural Capital of Food, this could provide a welcome boost to the town centre, supporting independent traders, hospitality operators and the wider local business community.

Key changes announced

• 100% rates relief: The qualifying rateable value threshold rises to £18,000 from April 2027.
• Tapered relief: The threshold increases to £21,000, extending support to a wider range of eligible properties.
• Additional high-street support: Qualifying retail, hospitality and leisure properties will benefit from a two-year real-terms freeze on business rates bills for 2027/28 and 2028/29, subject to the applicable rules.
• Support for pubs and venues: Additional relief will increase total business rates relief to 35% for qualifying pubs, social clubs and all but the largest live music venues.

These measures are intended to ease financial pressure on eligible businesses and provide greater certainty when planning for the coming years.

The new £18,000 threshold is not a blanket exemption for every commercial property. The announced increase applies to qualifying retail, hospitality and leisure properties in England, so eligibility and the amount payable will depend on the property, its use and the applicable relief rules.

Landlords and prospective tenants should therefore consider business rates alongside rent, lease terms, service charges and other occupation costs when assessing the overall affordability of commercial premises.

Today’s announcement provides a further reason for eligible small businesses to review their property requirements and future operating costs ahead of April 2027.

Looking for commercial premises in Melton Mowbray or the surrounding areas?

Whether you’re looking to open a new business, relocate, expand or review your existing commercial property arrangements, our experienced Commercial Property team at Shoulers is here to help.

We offer expert local knowledge and practical advice on commercial property sales, lettings and lease arrangements, helping landlords and businesses make informed property decisions.

Contact our Commercial Property team today to discuss your requirements and discover how we can help.