But a quieter rise in this budget will matter more to most FM and workplace teams than the rates relief. The National Living Wage is going up by 3.9%, and that lands directly on the biggest cost line for any FM or soft services contract: labour.
The small business rate relief threshold rises from £12,000 to £18,000 from April 2027, which the Treasury says will take around 70,000 high street businesses out of business rates altogether. The retail, hospitality and leisure tapered relief threshold also rises, from £15,000 to £21,000. For the wider pool of businesses that do not qualify for either relief, rates are frozen in real terms for two years, meaning no above-inflation rise over that period.
Pubs, clubs and music venues keep the 20% business rates cut from April 2027 that had already been confirmed before the budget.
What the budget does not appear to include is a new targeted increase to the rates multiplier for larger commercial properties, the kind of move that had been widely anticipated and discussed across the property press in the run-up to 28 October. If your organisation occupies premises above the small business threshold, it is still worth checking the official Treasury and Valuation Office Agency documents for your specific rateable value band, since none of the budget coverage reviewed for this article set out a confirmed multiplier change for that segment.
The National Living Wage rises by 3.9%, from £12.71 to around £13.20 an hour, and the National Minimum Wage rises by a similar margin, together affecting an estimated 2.3 million workers.
For most of Workplace Unplugged's readers, that is a manageable adjustment to a payroll line. For FM, cleaning and soft services providers, it is a different scale of problem. These are sectors where a large share of the frontline workforce sits at or close to the National Living Wage, and a 3.9% increase in that single cost line is not easily absorbed without a conversation with the client. Expect that conversation to start showing up in service charge reviews and contract renewals well before the rise takes effect.
If you sit on the buying side of an FM or soft services contract, this is the moment to ask your supplier how they plan to manage the increase, rather than waiting for it to appear as a line item at the next renewal.
Income tax on property income rises by a further 2 percentage points from April 2027, taking the rates to 24%, 44% and 49% across the basic, higher and additional bands. This comes on top of a 2 percentage point rise introduced in the previous year's budget, so landlords are now absorbing a second consecutive increase.
The Business Asset Disposal Relief threshold for capital gains tax also falls, from £1 million to £500,000, which will affect the calculations for anyone planning to sell a qualifying business asset.
Together, these changes do not point to an immediate shock for occupiers, but they add to the pressure on landlords at a time when commercial property investment appetite is already being watched closely. Whether that pressure shows up in rents or service charges over the next year is worth tracking rather than assuming either way.
The practical response to this budget is less about any single number and more about timing contract conversations around it. Three things are worth doing in the coming weeks.
Check where your organisation sits against the new small business and retail, hospitality and leisure thresholds, since the shift from £12,000 to £18,000 could change your rates position even if nothing else about your premises has changed.
Ask any FM, cleaning or soft services supplier how the 3.9% wage rise is being factored into existing and upcoming contracts, rather than discovering the answer at renewal.
If you are a landlord or manage property on behalf of investors, factor the second consecutive rise in property income tax into any modelling for 2027 onward, alongside the lower Business Asset Disposal Relief threshold if a disposal is on the horizon.
Did the budget raise business rates for offices? No targeted rise to the business rates multiplier for larger commercial properties, including most offices, was confirmed in the budget as reported by the property press. The relief measures announced apply to small businesses and retail, hospitality and leisure properties below the new thresholds.
How much is the National Living Wage rising, and from when? By 3.9%, from £12.71 to around £13.20 an hour. The National Minimum Wage rises by a similar margin. Check official government guidance for the exact effective date and rates by age band.
Does the property income tax rise affect all landlords? It applies to income tax on property income, rising by 2 percentage points across the basic, higher and additional rate bands from April 2027, on top of the previous year's 2 point rise.
Where can I check the detail for my own organisation? HM Treasury's Autumn Budget 2026 documents and the Valuation Office Agency's guidance are the primary sources for rates thresholds and multipliers specific to your property.
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