North Yorkshire Hospitality Boss Says Budget Falls Short Despite Rates Relief
The Budget lifts the full Small Business Rates Relief threshold to £18,000 and removes 70,000 retail, hospitality and leisure firms from business rates.
- On Wednesday, Labour Chancellor John Healey raised the Small Business Rates Relief threshold from £12,000 to £18,000, removing business rates payments for approximately 70,000 retail, hospitality, and leisure businesses nationally.
- Healey designed the Budget to give households and businesses "breathing space" from rising costs, though the government did not address industry calls to reduce VAT on hospitality from 20% to 10%.
- Simon Cotton, managing director of the Fat Badger Group in Harrogate, called the relief "a welcome step," yet noted the hospitality sector continues to face "significant cost pressures" on multiple fronts.
- The Budget confirms a rise in the National Living Wage, which Cotton argued adds "substantially to employment costs," while the Chancellor announced £10 million in alcohol duty relief for about 2,000 small brewers producing alcohol below 8.5% ABV.
- Economic forecasts from the OBR show GDP expanding by 1.2% this year but dropping to 1% next year, as Cotton plans to discuss the Budget with Harrogate & Knaresborough MP Tom Gordon emphasizing "constructive dialogue.
12 Articles
12 Articles
Budget 2026: business rate threshold hiked to £18k
standfirst: In the breathing space Budget, chancellor Healey increases small business rates relief thresholds to help small high street businessesAround 70,000 high street businesses will be taken out of business rates from next April as the threshold is raised by 50% from £12,000 to £18,000 through an increase of the small business rates relief (SBRR) thresholds for 100% relief. Meantime, the tapered relief jumps to £21,000 from £15,000 for qua…
UK Budget rates relief for high street eroded by rising wage bills
Business finance platform Capitalise has warned that the business rates relief announced in today's Budget will be largely offset by rising wage costs for retail, hospitality and leisure businesses. In his first UK Budget, Chancellor John Healey raised the small business rate relief threshold for retail, hospitality and leisure businesses from £12,000 to £18,000. The […]
Autumn Budget draws mixed reaction as experts weigh rates relief against rising costs
The Autumn Budget offers targeted relief for some small businesses and households, but is unlikely to ease the wider pressures facing the grocery and retail sectors, industry leaders have warned. IGD said business rates changes could help eligible smaller operators, but higher living wages will add to payroll costs, while the Retail Trust stressed the need to protect retail jobs and support shop workers. Small Business Britain welcomed measures …
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