Chancellor Healey proposes tax relief for small high street firms in upcoming Budget

In preparation for his inaugural Budget, Chancellor John Healey plans to introduce a package of tax measures designed to revive struggling high streets. Central to the plan is an overhaul of the business-rates system that would raise the Small Business Rates Relief threshold, ending a ten-year freeze, and provide tapered relief for properties up to a higher value. Treasury advisers are also looking at widening transitional relief to soften the impact of recent commercial property revaluations, which have raised some bills dramatically.

Over the last fortnight, the Treasury has run workshops with business groups to map out incentives for independent shops, cafés and other small enterprises. The government has already pledged a 20 % rate reduction for pubs, live-music venues and nightspots, expected to cut average annual costs by roughly £1,100 from next April. Industry bodies, such as UKHospitality, have welcomed the proposals and urged further relief for restaurants, cafés and hotels. The Budget on 28 October will centre on lowering the cost of doing business, alongside measures to boost public procurement and support early-stage entrepreneurs.