How the Autumn Budget will impact UK retailers

Business rate reform

There will be permanently lowered business rates for 750,000 retail, hospitality and leisure businesses, which will be paid for by higher rates on properties worth more than £500,000, used by "online giants".

There will be £4.3bn of support for properties that receive a large increase in their bill.

Daniel Todaro, the chief executive of Gekko Group, said: "With retail insolvencies increasing in 2025, it was vital that the Budget included measures to support the sector.

"Business rates reform - particularly permanent relief for retail properties - promises much needed stability for smaller businesses but larger companies, which are also fighting to survive, will foot the bill, putting them under even more pressure.

National living wage

Ahead of the Budget announcement, it was confirmed that minimum wage rates will increase in 2026, giving a pay rise for thousands of workers in the sector.

From next April the National Living Wage will rise by 4.1 per cent to £12.71 an hour for eligible workers aged 21 and over, which the Government said will increase gross annual earnings of a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers.

The National Minimum Wage rate for 18 to 20-year-olds will increase by 8.5 per cent to £10.85 an hour, narrowing the gap with the National Living Wage.

This will mean an annual earnings increase of £1,500 for a full-time worker, which the Government said marks further progress towards its goal of phasing out 18 to 20 wage bands and establishing a single adult rate.

The National Minimum Wage for 16 to 17-year-olds and those on apprenticeships will increase by 6 per cent to £8 an hour.

Todaro added: ""The boost in the national living wage will improve the quality of life for the UK’s lowest earners, but consumers may not feel the benefit for long.

"Businesses will certainly have no option but to pass the increased wage bill on to consumers, which will only increase inflation further. For those paying above the April 26 minimum wage, it will undoubtedly increase pressure on them to go further, impacting overheads and the ability to remain competitive.

To read the published comment by Dan Todaro, Gekko Group CEO, please visit Insider Media