04.11.2026, 08:51 (UK time)
News
In the Budget published on 28 October 2026 the government announced changes to business rates, the tax on business premises in England. From April 2027 rates for retail, hospitality and leisure businesses are to be frozen, reduced or cut to zero. According to the government, a further 70,000 such businesses will pay no business rates at all.
Analysis
Three main changes were announced. First – a higher threshold for Small Business Rate Relief. According to law firm Pinsent Masons, premises in these sectors with a rateable value of up to £18,000 are to get full relief. Second – pubs, music venues and social clubs will get an additional 20% reduction. Third – larger premises in these sectors will have their rates frozen for two years.
What it means
What counts is the value of the premises, not the size of the business. A small Polish shop, bakery, café or salon in premises with a low rateable value has a chance of paying less or nothing. The changes apply to England – Scotland, Wales and Northern Ireland have their own rules.
Risk
The detailed thresholds and rules will come in legislation and council notices. Beware of firms that call or write offering to “reduce your rates” for an upfront fee – many matters can be handled yourself, free of charge.
What to do
- Find your premises’ rateable value using the free GOV.UK service (Find a business rates valuation).
- Check whether you already receive Small Business Rate Relief – if not, ask your council.
- Keep your latest business rates bill so you can compare it with the 2027/28 bill.
- Do not pay intermediaries upfront. Ask your council or accountant first.
- Run a pub or live music venue? Follow announcements on the additional 20% reduction.
How to read this
This is a Budget announcement, not a final bill. Your council will set the exact amounts for your premises when it issues bills for April 2027. Until then it is worth watching, waiting and not making decisions under pressure.
Contact us
Have a question or need help in Polish? Email: [email protected], use the live chat on our website or call: 07508 267866 (Mon–Fri 9:00–13:00 and 15:00–18:00, Sat 11:00–14:00).
Sources: GOV.UK – Budget 2026, Pinsent Masons – Out-Law, ICAEW
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
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