FSB calls for business rate relief at Autumn Budget

Following research, the Federation of Small Businesses (FSB) has called on the Chancellor to increase the Small Business Rate Relief (SBRR) to £25,000.

14 Oct 2026

Following research, the Federation of Small Businesses (FSB) has called on the Chancellor to increase the Small Business Rate Relief (SBRR) to £25,000.

Currently, SBRR gives full relief to properties with a rateable value up to £12,000 and tapered relief up to £15,000. These thresholds have remained unchanged for almost 10 years. According to FSB, increasing the threshold to £25,000 would remove at least 250,000 more small businesses from paying rates.

Data from the FSB suggests that, if SBRR were expanded, almost a third (28%) of small employers would hire more staff and 26% would increase employee pay or benefits.

Other proposals from the FSB include increasing the Employment Allowance, cutting Business Asset Disposal Relief and raising the VAT threshold.

Tina McKenzie, FSB's National Chair, said:

'We need a tax system that rewards ambition rather than punishes it. Widen Small Business Rate Relief so fewer firms are dragged into a punishing pre-profit tax, protect the Employment Allowance so hiring does not become steadily more expensive, reverse the damaging rise in Business Asset Disposal Relief and raise the VAT threshold so firms are not deliberately holding back turnover to avoid a cliff edge. These are practical changes that would give small businesses a reason to invest, hire and grow.'

Internet link: FSB