By GB News (Politics) | Created at 2026-09-19 12:10:11 | Updated at 2026-09-20 08:05:41
20 hours ago
John Healey is set to cut taxes for high street businesses in his first budget later this year, it has been reported.
The Chancellor is pushing to change business rates in England by excluding some smaller firms entirely and cutting the tax bill for others.
Prime Minister Andy Burnham has previously said that high streets should become “a symbol of Britain’s renaissance” and has said before he took office that Labour must “listen to small businesses more” to fuel economic growth.
The Telegraph reports Treasury officials have held workshops with business groups over the last two weeks to discuss ways to rebuild high streets through tax breaks and incentives for business owners and hopefuls.
One option under consideration is increasing the threshold for small business rates relief (SBRR), which removes tax from firms in premises with a rateable value of less than £12,000.
The threshold has been frozen for a decade.
If it is increased in line with inflation, the rate would rise to £17,096, with others receiving tapered relief up to a rateable value of £20,000.
A rateable value is estimated by how much rent the property might make if it were to be rented out.
John Healey is set to slash taxes on high street businesses in his first budget
GETTY
A second option is to increase the Treasury’s transitional relief, which is in place to reduce the impact of business rate revaluations that came into effect in April.
The revaluations caused some bills to rise by up to 80 per cent.
Under the current system, smaller firms will not see their bills increase by more than 5 per cent this year, 10 per cent next year and 25 per cent in 2028-29, plus inflation.
Mr Healey is understood to be considering a longer transition period with bills increasing more slowly.
Mr Burnham already pledged to offer business rate support to pubs, clubs and live music venues, with a 20 per cent cut which he says will save the average firm £1,100 a year from April.
The British Beer and Pub Association estimates that raising the SBRR threshold from £12,000 to £18,000 would pull 5,000 pubs out of paying business rates.
Emma McClarkin, the chief executive of the Campaign for Real Ale, told The Telegraph: “We’ve long called for an increase in thresholds as this would help the local stay open, keep people in work, and remain the backbone of the community, and we’d strongly welcome this measure alongside a consideration of greater transitional relief.”
David Hale, Government affairs director at the Federation for Small Businesses, said the group would make the case for a “proper, sizeable increase to small business rates relief”.
“It’s an essential element of a pro-small business budget, taking large numbers of small firms out of this dated tax altogether and helping to make a reality of the promise of breathing space to come,” he said.
Kate Nicholls, chairman of UKHospitality, said: “We have been talking to the government since January this year about the significant increases faced by hospitality businesses.
“We are grateful that the government has looked at this and Andy Burnham acted immediately to give pubs some relief this summer.
“We are now working with the government to make sure that restaurants, cafes and hotels receive comparable support on business rate changes at the Budget.”
A Treasury spokesman said: “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
