Changes to remove more small companies from paying business rates could benefit Devon’s host of independent firms.

Chancellor John Healey has ramped up the relief on business rates for pubs, social clubs and live music venues, but more importantly has hiked the level at which small companies become liable for the charge.

Small businesses will now not pay business rates if their rateable value is below £18,000, compared to £12,000 now.

Rateable values are calculated by the Valuation Office Agency and are aimed at representing notional rental valuations for the properties that companies operate from.

This can disproportionately impact the likes of hospitality businesses, which require large footprints for their buildings compared to other professions.

However, from April 2027, small businesses won’t pay business rates unless their property has a rateable value above £18,000, and even then, they will qualify for tapered relief up to £21,000.

For pubs, social clubs and all but the very largest music venues (with rateable values of £1 million or above) the previously announced 15 per cent relief in 2026-27 will jump to 35 per cent from April next year.

However, some Devon businesses have given a lukewarm response, with some Devon politicians noting that wage increases will impact many of the county’s companies.

Georgina Turner, who runs The Regal in Kingsbridge, said quite a lot of pubs in the area have big rateable values, so the changes might not impact them.

“We really need something more like a VAT cut like that implemented in Europe to enable us to compete with the supermarkets and delivery services, such as Deliveroo,” she said.

However, retailer Adam Taylor, who runs Taylored Games in Kingsbridge, welcomed the changes.

“A £16,000 rateable value in our previous premises nearly killed us in the early days,” he said.

“Our rateable value in our new premises is only just below the £12,000 threshold, so any slight change – which I believe is going to happen – would take us over that.

“I also know there are a couple of properties on Fore Street, in Kingsbridge, such as one that is going to be a gallery, have a rateable value between £15,000 and £18,000, so part of the reason that unit has stayed empty for so long is because of the rates being so high due to its wide frontage.

“So, I think a change from £12,000 to £18,000 is a real positive for smaller businesses on the high street.”

David Reed MP, the Conservative member for Exmouth & Exeter East, said while the business rate changes would help, businesses faced pressure from the 3.9 per cent rise in the minimum wage.

“While business rate changes will offer some relief, higher staffing costs remain a particular concern for Devon’s hospitality, tourism, and retail sectors,” he said.