Budget week: wages, rates and alcohol duty all change by April
The Budget on 28 October set the cost picture for 2027: higher wages, higher alcohol duty and rates help for some venues in England. New harassment rules also started on 30 October, and more employment changes arrive on 1 January.
Employment28 October 2026
National Living Wage rises to £13.21 from 1 April 2027
The government accepted the Low Pay Commission's recommendations in full, so every rate goes up 3.9% across the UK. From 1 April 2027 the rate is £13.21 for workers aged 21 and over, £11.27 for 18 to 20 year olds, and £8.31 for 16 to 17 year olds and apprentices. The accommodation offset, which matters if staff live in, rises to £11.53 a day.
What it means for you
Cost your 2027 rotas at the new rates now, and decide what pay gaps you want to keep for supervisors and experienced staff. Some reports said £13.20, but the official figure is £13.21.
Tougher harassment duty is now in force, including for customer behaviour
Since 30 October, employers in England, Scotland and Wales must take all reasonable steps to prevent sexual harassment, a higher bar than reasonable steps. They can also be liable when a third party, such as a customer, harasses a member of staff, unless they took all reasonable steps to prevent it. More changes follow on 1 January 2027, when unfair dismissal rights start after six months instead of two years, the compensation cap goes, and employers must consult before creating or reviewing a tipping policy.
What it means for you
Review your risk assessment, policy and training so they cover customers, delivery drivers and contractors, and take advice if you are unsure what all reasonable steps means for your venue. Northern Ireland has separate law, and these changes do not apply there.
England raises business rates relief threshold to £18,000 from April
From 1 April 2027, retail, hospitality and leisure properties in England get full relief up to a rateable value of £18,000, up from £12,000, with tapered relief up to £21,000. The Treasury says this takes about 70,000 more businesses out of rates, including 3,500 pubs and 3,900 restaurants. For other qualifying properties, bill increases are capped at CPI inflation in 2027/28 and 2028/29.
What it means for you
Check your rateable value, because this relief mainly targets single-site businesses and groups may not qualify for full exemption. Scotland, Wales and Northern Ireland set their own rates: Wales plans a 30% cut for eligible venues below £51,000 rateable value from April 2027, and the Scottish Budget is on 3 December.
Alcohol duty rises 4.55% in February as pub relief hits 35%
All alcohol duty rates across the UK, including draught, rise by 4.55% on 1 February 2027, in line with RPI. In England, relief for pubs that still pay rates goes from 15% to 35% from 1 April 2027, and the Treasury estimates the wider package saves the average pub more than £3,000 next year. The government also plans a Guest Beer right for tied tenants in England and Wales, but that still needs legislation.
What it means for you
Review your drinks pricing before February, and ask suppliers when they plan to pass the rise on. The published rise is 4.55%, not the 3.9% in some reports.
Licensed venue numbers fall by 977 in a year, NIQ finds
NIQ counted 98,319 licensed premises in Britain in September, down 1% on the year, a net loss of 977 sites or nearly 19 a week. In the three months to September, 2,436 venues closed and 2,191 opened. Casual dining numbers fell 2.2% on the year and are down 23.4% since 2020, while licensed hotels rose 0.2%.
What it means for you
NIQ says the next couple of months are critical for the sector. For Christmas cover, Oxford Partnership data shows suburban locals sold about 242% more draught beer and cider on Christmas Eve 2025 than on other December Wednesdays, while city centre food pubs sold 12.9% less, so plan around your location.
Care providers warn council funding will not cover the wage rise
The Budget confirmed £500m for the first adult social care Fair Pay Agreement in England, due to start in April 2028, and the Casey Commission will report in 2027. Care England said extra council funding power will not leave enough headroom to pay for the higher wage rates and meet growing demand. The National Care Association said the Budget missed the chance to cut employer National Insurance for the sector.
What it means for you
The April 2027 wage rise lands a year before the Fair Pay Agreement, so work out your staffing costs now and raise fee rates with commissioners early.
English mayors to get overnight levy powers; hotels miss extra relief
The Budget confirmed plans for mayors and other strategic authorities in England to charge an overnight visitor levy, with the powers due from 2028. It will be a percentage of the accommodation price, no rate has been set, and legislation is still to come. Hotels were left out of the extra 20 point rates relief given to pubs, social clubs and live music venues, though rates firm Colliers says the two-year cap on bill rises will help many of them.
What it means for you
Areas are expected to set out plans by March 2028, and using the power is a local decision. Watch what your mayor or local authority proposes if you run a hotel, a pub with rooms or a holiday let.
Treasury says 2,200 more English cafés will pay no rates
The Treasury says an extra 2,200 cafés in England will pay no business rates from April 2027 under the higher relief threshold. Bakery trade bodies said that helps but does not offset rising wage and tax costs, and Scottish Bakers asked ministers to match the England relief. Black Sheep Coffee has also agreed a franchise deal for at least 20 new stores across northern England and southern Scotland.
What it means for you
Café owners in England should check their rateable value against the £18,000 and £21,000 limits. In West Yorkshire, Northumberland, Cumbria and Dumfries and Galloway, watch for new branded competition on high streets, retail parks and drive-thrus.
Gyms get rates help but ukactive says Budget falls short
Qualifying gyms in England get the higher rates relief threshold from April 2027, and the Chancellor said half of shops, restaurants and gyms will pay no business rates. ukactive welcomed gyms being named in the speech, and fitness facilities being recognised as anchor businesses for high streets. It also said the lack of help on staffing and energy costs could force operators to cut services or staff, or raise prices.
What it means for you
If your club is in England, check your rateable value against the new £18,000 and £21,000 limits. The wage rise to £13.21 still adds to your wage bill from April 2027, so build it into your 2027 staffing budget.
Written by ShiftComplete from the sources linked on each story. General information only, not legal, tax or financial advice. Rules differ across the UK, so check what applies to you.
Stop firefighting. Start finishing shifts.
Rotas that get sent, temps logged without paper, allergens one tap away and checks the team actually tick off. Set up in about five minutes.
