Chancellor Rachel Reeves will use tomorrow’s Autumn Budget to unveil a long-awaited overhaul of business rates alongside a freeze in corporation tax. In a pre-budget statement released today, she also confirms that both the National Living Wage and National Minimum Wage will rise from April 2026 – a move that promises higher take-home pay for millions of workers but presents fresh cost pressures for shops already operating on tight margins.
Reeves said the cost of living remains the biggest concern for working households and argues that the current economic model is failing to support those on the lowest wages. “Too many people are still struggling to make ends meet,” she said. “And that has to change.”
The rise will boost the incomes of around 2.7 million workers. For a full-time employee on the National Living Wage the uplift equates to roughly £900 a year, while those on the National Minimum Wage will see an increase of around £1,500.
Yet for independent retailers the move brings mixed implications. Many will welcome the prospect of more money in shoppers’ pockets, but higher staff costs remain a pressing concern for bricks-and-mortar businesses already operating on tight margins. Reeves acknowledges the need to support employers while protecting jobs, highlighting recent progress on trade deals with the US, EU and India as part of a wider push for economic stability.
The Chancellor stresses that freezing corporation tax and overhauling business rates are central to that effort. Long-criticised by the retail sector, the business rates system is expected to feature heavily in Wednesday’s Budget as Reeves outlines proposals aimed specifically at helping the high street.
Reeves says the Budget will mark the start of the government’s wider mandate for change, with a focus on easing living costs and creating a more stable environment for small businesses. Independent retailers will be watching closely to see how far the measures go in addressing their immediate challenges while supporting long-term growth.