Alongside headline tax changes for individuals, the Chancellor introduced a wide package aimed at easing pressure on high street firms while tightening rules for large online retailers and tourism operators.
More than 750,000 retail, hospitality and leisure properties will benefit from permanently lower business rates from April 2026.
The Government estimates this will be worth nearly £900 million a year to local firms.
A separate £4.3 billion support package will also cap bill increases for sectors hit hardest by the next revaluation cycle, offering some protection to businesses already dealing with rising costs.
Higher wages from April 2026
One of the biggest changes for business that will no doubt hit hospitality and retail businesses hard is the decision to once again increase the National Minimum and Living Wages.
From 1 April 2026, the rates will increase as follows:
- National Living Wage – £12.71 per hour
- National Minimum Wage for 18-20 year olds – £10.85
- National Minimum Wage for 16-17 year olds and apprentices – £8.00 per hour
These increases will add further pressure to sectors already managing rising supplier costs, higher energy bills and ongoing recruitment challenges, leaving many employers reconsidering staffing levels and future hiring plans.
How is the tourism sector impacted?
Prior to the Budget announcements there was speculation about a ‘Tourism Tax’.
The Government confirmed plans to give English regional mayors the power to introduce an overnight levy on visitors.
The intention is to give local leaders an additional tool to raise funds for projects that support growth, such as improving public transport, running large events or enhancing key commercial areas.
If introduced, the levy would bring England into line with Scotland and Wales, which are set to roll out their own overnight charges next year.
Many major cities globally operate similar schemes and studies suggest that modest fees do not significantly affect visitor numbers.
Even so, representatives from the hospitality sector argue that any new charge will increase costs for guests and may add to inflationary pressure.
The proposal will now go through consultation, including discussion on how revenue should be shared between mayors and local councils, and whether a cap on the charge is appropriate.
With local councils having agreed to progress devolution plans, holding Mayoral elections in May 2027, this is likely to be a key issue for Cumbria.
The Budget confirmed a clampdown on the misuse of the Tour Operators’ Margin Scheme by a small number of private hire vehicle operators, with the aim of creating a fairer system for taxi and tour providers who have been playing by the rules.
How are online retailers impacted?
Large online retailers will also face greater scrutiny. The Government will remove low-value import relief, closing the route that allowed certain platforms to bring goods into the country without paying duty.
This change is intended to level the playing field between online businesses and small shops on the high street that have long argued the current system favoured overseas sellers.
Lamont Pridmore’s Autumn Budget summary can be found here.
For support managing the changes announced in the Autumn Budget, please contact Lamont Pridmore.
