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Chancellor expands business rates relief for 70,000 firms

By Drooid · Oct 29, 2026 · How we work

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Summary

Chancellor John Healey announced business-rates relief for 70,000 hospitality, retail and leisure firms.
He raised the small-business rates relief threshold from £12,000 to £18,000.
He froze business rates for other eligible firms in real terms until 2028.
He increased the national minimum wage 3.9% to £13.20 per hour from April 2027.
He launched a £2.6 billion Household Energy Payment, giving up to 20 million households a £100 credit.

Summary

Henry Gregg, NPA executive, called relief “grossly unfair” because pharmacies pay rates while GPs and NHS dentists are exempt.
Gregg urged the government to remove pharmacies from the business-rates system entirely.
Janet Morrison, Community Pharmacy England CEO, said the minimum-wage rise imposes a cost burden on pharmacies.
Morrison noted pharmacies generate over £31 billion in net societal benefits each year.
Gregg warned many pharmacies could close without sustained long-term funding increases.

Summary

More than 40 retailers pledged 11,305 work-experience placements under the Opening Shift scheme, targeting 100,000 youth jobs by 2029.
Retail jobs fell to a record low of 2.78 million in Q2 2026, down 62,000 year-on-year.
The British Retail Consortium says rising costs added £6.5 billion to retail employment expenses over two years.
Helen Dickinson warned entry-level retail positions are disappearing as demand for staff rises.

History

Business rates, a property tax dating to the 1572 Vagabonds Act, were modernised by the 1988 Local Government Finance Act and expanded with Small Business Rate Relief in England in 2005 (50 % for values under £6,000). During the 2008 financial crisis, Chancellor Gordon Brown introduced a £2.5 billion, 10 % cut for over 150,000 small firms, saving £1.2 billion annually; the 2027 Healey plan revives that approach.

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Business rates, a property tax dating to the 1572 Vagabonds Act, were modernised by the 1988 Local Government Finance Act and expanded with Small Business Rate Relief in England in 2005 (50 % for values under £6,000). During the 2008 financial crisis, Chancellor Gordon Brown introduced a £2.5 billion, 10 % cut for over 150,000 small firms, saving £1.2 billion annually; the 2027 Healey plan revives that approach.

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