The Association of Convenience Stores (ACS) has welcomed the increase in the small business rate relief threshold as a major win for local shops, saying it will take thousands of small convenience stores out of paying business rates altogether.
Chancellor John Healey announced in the Budget that the threshold at which businesses start paying rates will rise from £12,000 rateable value to £18,000 rateable value.
ACS chief executive comments
ACS chief executive Ed Woodall said: “This is a major step forward in addressing the problems with the business rates system that we have been campaigning on throughout the year.
“Raising the rates relief threshold will mean that thousands of small shops pay no rates at all, protecting jobs and encouraging investment in every postcode.”
Evidence to select committee
Earlier this week, ACS gave evidence to a select committee on entrepreneurship, highlighting the challenges facing convenience store retailers seeking to maintain and scale their businesses.
ACS told MPs that business rates bills for the convenience sector have risen by 79% in the last two years, putting significant additional pressure on smaller local shops. The overall business rates bill for the convenience sector reached £356m in 2026.
