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UK’s Healey raises business rates threshold for small firms

By Thomson Reuters Oct 28, 2026 | 8:12 AM

LONDON, Oct 28 (Reuters) – British finance minister John Healey said on Wednesday he ​would raise the threshold ‌at which small companies start paying business rates.

“I’m increasing the threshold for Small Business Rate Relief ‌for ​retail hospitality and ⁠leisure businesses from £12,000 ⁠to £18,000 ($15,900-$23,900),” Healey said in his budget speech to parliament.

The figures relate to “rateable value”, the ​estimated annual rental value of a commercial property.

Healey said ⁠the move ⁠will mean 70,000 businesses ​will not pay any business rates – ​a property tax charged on ‌commercial properties to fund local services.

He said other businesses in the retail, hospitality ⁠and leisure sectors would see their rates frozen in real terms.

Prime Minister ⁠Andy ‌Burnham had said in ⁠July he would ​lower ‌business rates for pubs, ​clubs and ⁠live music venues by 20% from April 2027.

($1 = 0.7527 pounds)

(Reporting by David Milliken, writing by James Davey; Editing by ​Toby Chopra)