Autumn Budget 2026: Business rates and council tax
From 1 April 2027, Mayors will be able to receive a share of business rates income in exchange for investment funds, mayoral capacity funding and local growth funds, alongside a 20% share of growth in their areas on a permanent basis.
Business rates relief for pubs, social clubs and almost all live music venues in England will be increased from 15% to 35% from 1 April 2027. Live music venues with a rateable value of £1 million or above will not receive this increased relief.
The Small Business Rates Relief (SBRR) eligibility threshold for qualifying retail, hospitality and leisure (RHL) properties in England will increase from 1 April 2027. The threshold for 100% relief will increase to a rateable value of £18,000 (currently £12,000), and the threshold for tapered relief will increase to a rateable value of £21,000.
For qualifying retail, hospitality and leisure (RHL) businesses in England, the government has confirmed that it will cap increases in business rates by CPI inflation in 2027/28 and 2028/29. The cap will not apply to increases in rateable values resulting from improvements.
The government is extending the 2026 Supporting Small Business (SSB) scheme to those who were in receipt of 2023 SSB for one year from 1 April 2027, in England. The government is also extending the 1p Transitional Relief Supplement (TRS) for two years from 1 April 2027.
From 1 April 2027, Adult Gaming Centres (AGC) in England will no longer be eligible for the RHL multipliers and vape shops in England will no longer be eligible for the RHL multipliers and the SBBR.
Announced in the November 2025 Budget was the High Value Council Tax Surcharge (HVCTS), an annual charge on owners of properties in England valued at £2million and above, to take effect from 1 April 2028. The government have confirmed that it will introduce a deferral scheme, a series of discounts and exemptions, and a 100% premium on properties left empty and unoccupied for 12 months or more.
