Chancellor Healey is set to slash business rates for high street shops in his first Budget

From the Newshound archive · first published 19 September 2026.

John Healey is considering far-reaching changes to England's commercial property taxes before his first Budget, with a large number of small firms potentially escaping business rates altogether. Treasury officials have spent a fortnight holding sessions with business groups to outline the package. The proposals build on Prime Minister Andy Burnham's pledge to make Britain's high streets a symbol of national renewal.

A key proposal would raise the Small Business Rates Relief threshold from £12,000 to £17,096, in line with inflation, wiping out the levy for independent shops and cafes across the country.

Transitional relief is also under review, after recent property revaluations landed some commercial occupiers with bill rises of up to 80 per cent.

Tax breaks and entrepreneurial incentives would stretch through to the end of parliament, giving small businesses longer-term protection from soaring costs.