Autumn Budget 2026: Key announcements relevant to BHTA members

Last Updated on 30/10/2026 by Sarah Sarsby

The Autumn Budget 2026 includes changes to business rates, minimum wages, business mileage rates, and R&D tax administration relevant to BHTA members, alongside support for BHTA member Convatec’s UK investment.

Members operating retail premises

From 1 April 2027, eligible members with retail premises in England could receive more Small Business Rates Relief, with some paying no business rates.

The full-relief threshold will rise from a rateable value of £12,000 to £18,000. Partial relief will taper to zero at £21,000, up from £15,000. Rateable value is the property valuation used to calculate business rates.

For members selling or hiring goods, occupied premises must be used wholly or mainly to serve visiting members of the public. Businesses generally need to occupy one property, although exceptions apply. Members should check eligibility with their council, particularly for multiple premises or mixed activities.

Business rates bill increases for qualifying retail properties will also be capped by CPI inflation in 2027-2028 and 2028-2029, subject to exceptions. See the government’s supporting Budget guidance.

Members selling through online marketplaces

From October 2027, online marketplaces will collect VAT on sales by UK VAT-registered businesses and other UK businesses meeting a minimum annual sales threshold of £90,000 per platform.

Personal sales, second-hand goods, and business-to-business transactions will be excluded.

The measure aims to tackle VAT non-compliance and help fund high street business rates reductions. The Budget does not explain arrangements for sellers or the treatment of healthcare products eligible for VAT relief.

Minimum wages and business mileage

From 1 April 2027, the National Living Wage will increase by 3.9 percent to £13.21 per hour. The National Minimum Wage will rise to £11.27 for 18- to 20-year-olds and £8.31 for 16- to 17-year-olds and eligible apprentices.

Members employing apprentices aged 19 and over must pay at least the minimum wage for their age once they complete their first year.

The 55p tax-free mileage rate for the first 10,000 business miles will become permanent. The rate above 10,000 miles will rise from 25p to 35p from 6 April 2027.

These rates cover staff using their own cars or vans for work, including customer visits, assessments, and servicing; they are not compulsory reimbursement amounts.

Members claiming R&D tax relief

The Claim Notification Form will be removed for R&D tax relief claims made on or after 1 April 2027, eliminating a separate notification step for affected businesses, including first-time claimants.

The Additional Information Form, covering R&D projects and qualifying expenditure, will be simplified from autumn 2027. The Budget does not specify which requirements will change.

See HMRC’s claim notification guidance for requirements ahead of the change.

Government support for Convatec’s UK investment

The Budget confirms grant support for BHTA member Convatec’s plans to invest more than £500 million in the UK over the next decade, including a global R&D hub in Manchester.

First announced in October 2025, the investment will support product evaluation and UK research and manufacturing capabilities.

Other announcements for members to be aware of

A new ‘UK supplier’ definition is due by January 2027 to improve tracking in public procurement. A National Procurement Policy Statement will follow in March, prioritising jobs, fair pay, and skills.

Guidance for the revised Social Value Model accompanied the Budget. The model applies to relevant central government procurements worth at least £1 million, including VAT, commenced from 1 January 2027.

The NHS in England will receive another £190 million in 2026-2027. An NHS productivity and AI review will report in early 2027; the first competition under a £15 million AI Challenge Prize will focus on the NHS.

Read the full Budget document.

BHTA responds to the Autumn Budget 2026

David Stockdale, Chief Executive of the British Healthcare Trades Association, said: “Targeted business rates relief and simpler R&D claims are welcome for eligible members, although higher minimum wages will increase costs for employers paying those rates.

“However, we are disappointed that the government has not announced any dedicated support for the healthtech sector.

“In our response to the Autumn Budget 2025, we called for sustained investment in community equipment and wheelchair services, and the removal of VAT on public access defibrillators. This Budget announces neither dedicated new funding for those services nor action on defibrillator VAT.

“We will continue to press for sustainable funding and contracts that recognise quality, service continuity, and long-term value, enabling members to deliver the equipment and services people rely on.”

This builds on BHTA’s work with parliamentarians on the lifetime value of children’s equipment and its calls following the NRS Lessons Learned Review for procurement to recognise quality, resilience, and outcomes.