Small business rates relief threshold set to rise to £18,000, but bigger operators say it misses them

The Chancellor, John Healey, is expected to raise the rateable value threshold at which businesses start paying rates from £12,000 to £18,000 at the Budget on 28 October, The Morning Advertiser reports. The Sunday Times first reported the plan.

The reported numbers - Around 75,000 properties in England taken out of business rates altogether, including about 2,600 pubs, 2,500 restaurants and 1,600 cafés, according to analysis by tax firm Ryan - An estimated cost of about £460m a year, reportedly to be funded by making online marketplaces collect VAT owed by third-party sellers - England only, as rates are devolved - This sits on top of the 20% rates cut for pubs, social clubs and live music venues from April, announced in July. Hotels were not included in that

What operators said Tim Bird of Cheshire Cat Pubs and Bars said: "It makes no difference at all to any of our businesses. It simply helps very small businesses avoid paying rates." Multi-site London pub operator Paul McAstocker welcomed any help but said pubs like the Wooden Cross "already sit well over the threshold". Chef-owner Ayesha Kalaji of Queen of Cups said VAT, not rates, was the sector's real burden.

What it means for operators: if the reports are right, the benefit lands on the smallest sites and most managed estates won't see it. For groups, employment costs, duty and rates on larger properties matter more. Check which of your sites sit near £18,000 rateable value now.