he UK government's 2026 Budget has announced higher business rates relief thresholds for qualifying businesses in England, but the Independent Garage Association (IGA) says the measures do not go far enough to support independent workshops.
Chancellor John Healey's Budget, delivered on 28 October, includes changes to business rates, an increase in the National Living Wage and an extension of the temporary fuel-duty reduction.
For independent garages and tyre retailers, the impact of the business rates measures will depend on whether their premises qualify under the retail, hospitality and leisure (RHL) rules.
Under the Budget 2026 proposals, the rateable value threshold for 100% Small Business Rates Relief will increase from £12,000 to £18,000 for qualifying RHL properties in England from 1 April 2027.
The upper threshold for tapered relief will rise from £15,000 to £21,000.
The government has also announced a two-year real-terms freeze on business rates bills for qualifying RHL properties in 2027/28 and 2028/29, subject to specified exceptions.
The IGA has welcomed the higher thresholds but questioned whether the changes will benefit enough independent automotive businesses.
Stuart James, chief executive of the association, said many independent garages could miss out on the enhanced support despite operating customer-facing businesses.
The association also criticised the lack of immediate assistance with operating costs and renewed its concerns about the MOT test fee, which has remained unchanged since 2010.
The distinction is important for automotive businesses.
The government's existing RHL eligibility guidance explicitly includes garages among the examples of businesses that can qualify for the lower retail, hospitality and leisure multipliers.
It also identifies MOT and repair services provided to visiting customers as activities potentially within scope.
However, eligibility depends on how individual premises are used. Properties must be wholly or mainly occupied for qualifying activities, with local authorities responsible for determining eligibility under the regulations.
For tyre retailers combining customer-facing sales and fitting services, the nature of the premises and their principal use will therefore matter. A workshop, retail outlet or distribution-focused property should not automatically be assumed to qualify simply because it operates within the tyre sector.
The Budget's new higher relief thresholds apply to qualifying RHL properties, while other forms of small business rates relief and transitional support remain relevant to premises outside that classification.
The government also confirmed that the National Living Wage will increase by 3.9% to £13.21 per hour from 1 April 2027.
The change will affect employers with workers paid at the statutory minimum, including qualifying employees in tyre-fitting businesses and independent workshops.
Meanwhile, the existing temporary 5p-per-litre reduction in fuel duty will be extended until 1 July 2027, with the planned inflation-linked increase also deferred until that date.
The measures offer different forms of support, but the IGA maintains that the Budget provides insufficient immediate relief for independent garages facing operating-cost pressures.
For tyre retailers and workshops, the next practical step will be to establish whether their premises qualify for the enhanced business rates provisions and how the April 2027 changes affect their individual circumstances.
Tags: UK Budget 2026, business rates relief, independent garages, tyre retailers, Small Business Rates Relief, Independent Garage Association, IGA, National Living Wage, automotive aftermarket, tyre fitting, fuel duty, garage operating costs.
Editorial Standards & Disclaimer
Tyre News Media is an independent industry publication. Our reporting is based on information available at the time of publication, including company announcements, regulatory filings, official data, research and other sources considered reliable.
Articles may include independent analysis and editorial interpretation. Where appropriate, company statements and third-party claims are attributed to their source. Analysis, estimates and forward-looking observations should not be read as statements of established fact.
Tyre News Media takes reasonable steps to ensure accuracy but welcomes corrections, clarifications and responses from organisations or individuals covered in our reporting. If you believe information is inaccurate or requires clarification, please contact info@tyrenews.co.uk. Material errors will be corrected as appropriate.
Commercial relationships, advertising and sponsorship do not determine Tyre News Media's editorial coverage or conclusions.
%20(1).jpg)
%20(1)%20(1).png)
%20(1).jpeg)
