By George Schofield, Associate Director - York
The 2025 Autumn Budget delivered a mixed picture for the property market overall, but for smaller occupiers and high-street traders it offers some welcome relief, suggesting that the Government may be banking on support for small business to help revive our town centres.
What changed for retail, hospitality & leisure
The Government has introduced permanently lower business-rates multipliers for RHL-use properties with rateable values (RVs) under £500,000. From April 2026, this will replace the temporary RHL discount scheme that many businesses have relied on since the pandemic. The new multipliers will be 5p lower than the standard multipliers, putting many operators on the most favourable footing since the early 1990s.
What it means for bigger properties
As part of the same reforms, a higher multiplier will be applied to properties with RVs of £500,000 or more, often warehouses, retail parks, large-format units and big-box stores. That means that some of the largest commercial properties, many occupied by national retailers or logistics operators, will see their business rates bills go up.
Transitional Relief & 2026 Revaluation: “gentler landing”
Ahead of the next business-rates revaluation (effective from 1 April 2026), the Budget includes a £4.3 billion relief package designed to support those facing large increases. This transitional relief will cap the rate at which bills can rise following revaluation, helping businesses adjust gradually rather than being hit by a sudden spike. In effect, businesses in rising-value areas or those expanding into larger premises get some breathing space, which might help retention, investment and new lettings.
What this might mean for high streets and commercial property
For many small and mid-sized high-street operators, this could improve the viability of trading, reducing one major cost pressure (rates) when combined with already tight margins on rent and overheads. It may encourage reluctant landlords to re-offer vacant shops, potentially increasing supply on traditional high streets and boosting vibrancy in towns and suburbs. That said, larger-format retail parks or big logistics/warehouse assets may see their costs rise, which could increase pressure on those tenants to renegotiate leases or restructure operations.
The 2025 Autumn Budget’s business-rates reforms deliver a significant boost to the traditional high street, permanently lower rates for many smaller RHL operators, phased adjustments to revaluation, and potential breathing space for a sector that’s been hammered in recent years.
But the flipside is a burden on bigger premises and for investors or landlords of large-format assets, that may increase holding costs or complicate leasing strategy.
If you’ve got a property portfolio with mixed asset sizes, this Budget makes it clear: location, use and size matters more than ever.
