UK Budget Announces Increased Small Business Rate Relief and Minimum Wage Hike

Chancellor John Healey announced in the October 28 Autumn Statement that the small business rate relief threshold will rise from £12,000 to £18,000 for retail, hospitality, and leisure sectors. Consequently, half of these businesses will pay no rates, while all paying retail businesses face a two-year freeze. The national minimum wage for those aged 21 and over will increase by 3.9% to £13.20 per hour starting April 2027. Additionally, 100% of business rates revenue will be retained locally by the end of the decade through devolution to mayors. Reactions were mixed; the Federation of Small Businesses criticized the measures as insufficient for energy costs, whereas Bira welcomed the relief increase.