UK Autumn Budget: business-rate relief for retail and hospitality, wage rise
The UK government's Autumn Budget, announced on October 28, 2026, includes tax measures for agriculture and food industries and business-rate support for retail and hospitality. From April 2027, the National Living Wage will also rise, which JETRO says will add labour costs for labour-intensive sectors.
Key points
- For retail, hospitality and leisure small-business relief, the rateable value for full relief rises from £12,000 to £18,000, and relief for pubs and live music venues from 15% to 35%
- From April 2027 the National Living Wage for those 21+ rises 3.9%, from £12.71 to £13.21 per hour
- The suspension of tariffs on 135 food items is maintained to the end of 2028, with additional suspensions for items such as vegetables, sauces and chocolate
Background
The budget aims to curb production costs and improve the business environment. For farming, the red diesel tax cut is extended to July 1, 2027 and the fertiliser tariff suspension to the end of 2027. For food manufacturers, a new scheme (BICS) from April 2027 will discount electricity bills by 20–25% for about 10,000 energy-intensive manufacturers.
Business-rates bills for retail, hospitality and leisure premises will rise no faster than CPI in 2027/28 and 2028/29, effectively frozen in real terms until the end of March 2029. For online sales, collection and payment of VAT on online marketplaces will be tightened.
What it means for shops
Japanese firms exporting food to the UK, or running shops and restaurants there, may see their cost structure affected. Maintained food tariff suspensions help on the import-cost side, while higher wages could feed into local restaurant and retail prices and sourcing decisions.
What shops should do
- If you export food to the UK, check with your importer whether your products fall under the tariff suspensions
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Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.