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Among the headline measures is an increase in the Small Business Rates Relief (SBRR) threshold for retail, hospitality and leisure (RHL) occupiers. From April 2027, the threshold for 100% relief will rise from £12,000 to £18,000, while the tapered relief threshold will increase to £21,000.

 

The change is expected to provide meaningful support for many smaller occupiers at a time when operating costs remain under pressure. Luke Longley says: "Raising the Small Business Rates Relief threshold is a positive and long-overdue step that will provide meaningful support for many smaller retail, hospitality and leisure businesses. However, it is disappointing that the measure is restricted to those sectors, leaving many other small businesses facing the same financial pressures without similar assistance."

 

The change also places greater importance on ensuring businesses are correctly classified within the rating system. Luke adds: "It will become even more important that businesses are correctly listed as retail, hospitality and leisure occupiers where appropriate. We regularly encounter situations where businesses operating from non-traditional premises are overlooked. A gym trading from a former industrial workshop, for example, may not always be readily identified as qualifying for relief, potentially leaving occupiers paying more than they should."

 

Another significant announcement is the Government's intention to allow local authorities to retain 100% of business rates income by the end of the decade. While the policy is designed to encourage local economic growth and investment. Luke says: “This may also alter the dynamics of how reliefs are administered. Greater retention of business rates may encourage local authorities to focus more closely on growing their tax base, but it could also create a stronger incentive to take a more robust approach towards granting reliefs and exemptions. Businesses will need to ensure they are receiving every relief they are entitled to and paying the correct amount of rates."

 

Away from the headline-grabbing announcements, Luke highlights one particularly positive change that has received relatively little attention: the removal of Valuation Tribunal appeal fees.

 

Under the Budget measures, the Government will abolish the £150 and £300 fees currently charged by the Valuation Tribunal for non-domestic rating appeals in England. The change will apply to the 2026 Rating List and future lists, with fees already paid on 2026 appeals set to be refunded.

 

"This is an extremely positive move and one that removes a barrier to accessing justice within the business rates system. While the fees themselves are not substantial in comparison to potential rates liabilities, they have often acted as a deterrent for smaller businesses considering whether to pursue an appeal."

 

"The removal of these charges should improve access to the appeals process and help ensure ratepayers can challenge assessments they believe are incorrect without facing an upfront cost."

 

The Budget also included a number of additional business rates measures that received less publicity, including extending the Supporting Small Business scheme from April 2027, extending the Transitional Relief Supplement for a further two years, introducing a new General Anti-Avoidance Rule for business rates and funding local authority legal costs in cases challenging avoidance schemes.

 

Luke concludes: "The removal of tribunal fees, alongside the increase in Small Business Rates Relief thresholds and other support measures, demonstrates that the Government recognises the need for reform within the business rates system. However, many of the changes also bring additional complexity. Businesses should not assume reliefs will automatically be applied or that their assessment is necessarily correct. Understanding your position, challenging inaccuracies and seeking specialist advice where appropriate will become increasingly important in the years ahead."