Autumn Budget 2026: What could business rates reform mean for your business?

Written by Vail Williams LLP

Debate over the future of business rates has intensified in recent days, following reports that the Chancellor is weighing a £1 billion increase targeting large offices.

With some sectors lobbying for relief and others bracing for higher bills, the question ahead of the Autumn Budget on 28 October is whether meaningful reform is finally coming, or whether the burden will simply be redistributed once again.

Adam Barnfield, Head of Business Rates at Vail Williams in Birmingham, assesses what may be on the horizon and reiterates why wholesale reform of the system is long overdue.

A business rates system under strain

Businesses have had little time to absorb the business rates changes introduced in April 2026. New rateable values, revised multipliers and the end of the previous retail, hospitality and leisure relief scheme have all reshaped liabilities. Transitional support has softened the immediate impact for some occupiers, but concerns about future costs remain.

The Government has since announced a further 20 per cent business rates cut for pubs, social clubs and eligible live music venues from April 2027. But how will this be funded, and will we see comparable support for other sectors?

As we approach the Autumn Budget, Vail Williams is calling for the new Chancellor, Rt Hon John Healey MP, to pursue broader structural reform.

Adam Barnfield said: “For years we’ve been calling for a wholesale reform of the business rates system. With a new Prime Minister and Chancellor promising to bring ‘hope again’, now is the moment to deliver a system that is fair, simple and fit for purpose.

“The current system has become unwieldy. Post‑Covid interventions layered temporary reliefs and exemptions on top of an already complex framework. Six years on, as those reliefs taper away, businesses are still dealing with the fallout.

“Protecting the high street is essential, but complexity and more red tape is not the way to do it. We need simplicity, uniformity across councils and consistency across processes, not a patchwork of multipliers, reliefs and variable local rules.”

Key business rates issues to watch on Budget Day

Could large offices face a £1 billion business rates increase?

Reports suggest the Chancellor is considering a business rates increase on high‑value commercial premises to raise £1 billion for the Treasury.

Properties with a rateable value above £500,000 could be targeted, with larger retail and hospitality premises reportedly excluded and a further rise on warehouses ruled out. This would leave large offices particularly exposed, with London and the South East expected to bear most of the impact.

While details remain unconfirmed, the prospect raises concerns about higher occupation costs and the potential effect on business investment and growth.

Could small business rate relief be expanded?

One of the most specific proposals reported is a potential increase in the rateable value threshold for full Small Business Rate Relief from £12,000 to £18,000. This could remove business rates liability for some smaller premises, including pubs, shops and cafés. The British Beer and Pub Association has suggested that around 5,000 pubs could benefit.

Of course, any change will depend on the Chancellor’s final decision and the eligibility rules, so businesses should avoid assuming a higher threshold will apply when planning for next year’s costs.

Will transitional relief be extended?

The 2026 Revaluation shifted rateable values across the country. Transitional relief limits how quickly some bills can rise, but many businesses are concerned about what happens as that protection tapers.

Adam explains: “An extension is reportedly under consideration. This would give affected ratepayers more time to adjust to higher liabilities, although the value of any extension would depend on which properties qualify and how long the protection lasts.

“For many occupiers, this could be one of the most consequential Budget decisions, with cash flow implications even where the underlying RV remains unchanged.”

Will business rates relief expand for hospitality businesses?

Pubs, social clubs and eligible live music venues are due to receive an additional 20 per cent cut from April 2027. Restaurants, cafés and hotels are now calling for comparable support, arguing that they face rising operating costs and, in many cases, higher property liabilities.

A Budget measure aimed at supporting the high street could extend beyond the venues already covered, but this is far from guaranteed. The Chancellor must weigh any additional relief against its cost, and there has been no confirmation that the 20 per cent cut will be broadened.

What could business rates reform mean for retailers and warehouses?

Retailers including Kingfisher continue to press for a fairer balance between physical stores and online businesses. At the same time, some larger retailers warn against increasing rates on substantial stores to pay for relief elsewhere, arguing that these premises provide jobs and help draw customers to shopping areas.

How should businesses prepare for potential business rates changes?

Whatever the Chancellor announces, businesses will need to assess the effect on their properties.

A business rates review can help identify calculation errors, assess relief eligibility and establish whether there are grounds to challenge a valuation.

• Rateable value: Does a business rates assessment accurately reflect the property and the relevant valuation evidence?
• Business rates multipliers: Has the correct multiplier been applied?
• Business rates relief: Are you receiving the support for which you qualify?
• Transitional relief: How could the amount payable change as protection reduces?
• Property plans: Could a lease renewal, relocation, vacancy or portfolio change affect your future liabilities?

“The business rates system is far too complicated and warrants a complete overhaul. Last year’s introduction of five different multipliers made the system even more onerous, compounded by inconsistent eligibility criteria for reliefs.”

Business rates: A system in need of fundamental reform

Adam concluded: “There have been calls to scrap the higher multiplier, which has disproportionately impacted medium‑sized businesses rather than the large operators it was intended to target. A more logical approach would be a super‑multiplier specifically for major distribution warehouses (the Amazons of the world) rather than a blanket threshold for all businesses with an RV above £500,000.

“Empty property relief also needs a fundamental review. The current structure neither incentivises occupation nor reflects regional market realities.

“But before we get lost in multipliers and reliefs, we must get back to basics – are the rateable values right? Moving from five‑year to three‑year revaluations was a step forward, but the valuation approach for retail, hospitality and leisure is long overdue for reform.

“We need a simpler, more transparent valuation framework that genuinely supports struggling high streets. Fixing these flawed foundations would achieve far more than layering on further reliefs. Let’s get the basics right by streamlining the system, removing unnecessary variables and keeping it simple.”

Business rates advice ahead of the Autumn Budget 2026

The Autumn Budget could bring significant changes to business rates and the impact will vary by sector, location and individual rating assessment.

Vail Williams’ business rates specialists help occupiers, landlords and investors review their liabilities, identify applicable reliefs, investigate historical overpayments and assess potential valuation challenges.

To understand how the 2026 business rates revaluation or proposed Budget changes could affect your property or portfolio, contact the Business Rates team.