Healey set to exempt thousands of small firms from business rates entirely in first Budget high street rescue

From the Newshound archive · first published 19 September 2026.

Chancellor John Healey is drawing up plans to slash business rates for pubs, cafes and independent shops ahead of his first Budget, with some smaller firms set to be removed from the tax altogether. Treasury officials have spent the past fortnight in secret talks with business groups to map out the relief package. The British Beer and Pub Association says raising the relief threshold to £18,000 alone would save 5,000 pubs from paying rates.

The current Small Business Rates Relief threshold has been frozen at £12,000 since 2017 — raising it in line with inflation would lift it to around £17,096.

Some businesses face rate bills rising by up to 80% after April's revaluation; Healey is also weighing extended transitional relief to slow the increases.

BBPA chief executive Emma McClarkin says a higher threshold would help 'keep people in work' and protect 'the backbone of the community'.