Earlier this year, the government confirmed some long-awaited changes to business rates that will make a real difference to small firms in the retail, hospitality and leisure sectors.
From April 2026, qualifying businesses will benefit from a permanent discount of up to 40%, giving many the breathing space they’ve needed to invest, grow and stay competitive on the high street.
A quick recap
Business rates have been a long-running challenge for shops, restaurants, cafés, pubs and leisure operators. Rising property costs and tight margins have made them one of the biggest fixed expenses for many independent businesses.
To help ease that pressure, the government announced:
- A permanent 40% discount on business rates for eligible retail, hospitality and leisure premises with a rateable value below £500,000
- A freeze on the small business multiplier, preventing rates bills from rising with inflation
- The continuation of business rates improvement relief, meaning property improvements won’t trigger immediate rate increases
It’s estimated that around 250,000 businesses will benefit once the measures take effect.
A mixed picture in Oxfordshire
Closer to home, the Oxfordshire hospitality scene shows both optimism and challenge.
On the positive side, several local pubs — including The Bull, The White Hart at Fyfield, and The Killingworth Castle — were recognised in The Good Food Guide’s 100 Best Pubs 2025. It’s a reminder that the region’s independent venues continue to thrive through quality, community and creativity.
At the same time, the news that Le Manoir aux Quat’Saisons will close for 18 months in January 2026 for a major redevelopment — affecting around 150 staff — highlights how even world-class establishments are navigating rising costs and long-term investment decisions.
These contrasting stories make the upcoming rate changes especially relevant for Oxfordshire’s hospitality and leisure operators.
Who’s eligible
The relief applies to occupied properties that are mainly used as:
- Shops
- Restaurants, cafés, pubs or bars
- Cinemas, gyms or leisure facilities
- Hotels, guesthouses or self-catering accommodation
Properties with a rateable value of £500,000 or more will not qualify, and subsidy control rules will apply for larger business groups.
Why this matters now
Even though these changes won’t take effect until April 2026, they’re worth planning for today. Reviewing your rateable value, property use and any planned refurbishments could help you maximise the benefit when the discount begins.
For many businesses, this could mean thousands of pounds in annual savings — funds that can be redirected towards staff development, refurbishment or marketing to strengthen their position ahead of 2026.
Our view
These measures won’t fix every challenge facing the high street, but they are a meaningful step in the right direction. For owner-managed businesses in particular, they bring a bit more certainty to future planning.
At The MGroup, we’re already helping clients in the retail, hospitality and leisure sectors review their property and rates positions to prepare for the changes.
If you’re unsure how these reliefs might affect your business, it’s worth having a quick review now rather than waiting until next year.