‘There has to be a bolder shift’: retail and hospitality businesses assess relief in budget

What happened The chancellor, John Healey, announced cuts to business rates for a larger number of small firms and placed a cap on the increase in the minimum wage for workers under 25 in the 2026 budget. James Nye described the measures as "like letting the tyres down and then handing you a pump." The managing director of Anglian Country Inns in Norfolk said the budget took "a couple of steps towards helping" but also added extra labour costs for already pressured companies.

Why it matters Retail and hospitality operators, which have faced rising costs and labour shortages, see the rate relief as a modest boost, yet the limited wage rise may increase payroll expenses for younger staff, affecting profitability.

Background These measures form part of John Healey’s first budget as chancellor, aiming to balance support for small businesses with broader fiscal constraints.