30 Oct
Autumn Statement 2024

Today’s Autumn Statement presents a mixed bag for city centre businesses. 

While the increase in the national minimum wage to £12.21 per hour from April 2025 is a positive step for workers, the rise in employer national insurance contributions to 15% will undoubtedly put additional financial pressure on many businesses. 

The increase in the employment allowance to £10,500 is a welcome relief for smaller businesses, but the overall tax burden remains significantly high.

While avoiding the complete removal of business rates relief is a relief, businesses will still need to cover the gap from the current 75% relief to the new 40% rate. 

With downgraded economic growth forecasts, more needs to be done to stimulate growth. 

The announcement of plans for long-term reform of the business rates regime is encouraging. And the additional investment to tackle shoplifting is also welcome, but it needs to be part of a broader package of investment and collaboration to revitalise our high street.

We urge the government to consider further measures to support city centre businesses, which are vital to the local economy and community.

Diane Jarvis
Head of Business Operations


The significance of this budget for city centres should not be underestimated - and it’s looking like a mixed picture for our levy payers.

The Chancellor’s clear intention is to grow the economy and enable public sector finances to recover in the medium term. However, in the short term many of our members are likely to struggle with the additional costs that will impact on their businesses alongside the continuing high interest rates and higher prices. 

Additional funding for infrastructure, including transport and housing is obviously welcomed by the BID. The investment in R&D is also welcomed, as is the additional funding for local authority planning officers. Conversely though, cuts in local growth money are a concern. Hundreds of millions are to be cut from the UK Shared Prosperity Fund. Sheffield City Centre has not done well from levelling-up funding, but it is not clear what will replace it. 

The picture also looks mixed for hospitality. Nationally, the hospitality sector estimates that their businesses will face £3 billion in additional taxes next year albeit business rates for the sector are to be reset on a permanently lower level. 

It is good to hear that additional grant funding is being made available to councils that are most in need but it is not understood yet whether Sheffield will benefit.

Tony Stacey
Chair of the Sheffield BID Board


A summary of the main announcements relevant to the high street and city centre businesses are highlighted below. 


Business rates  

  • Reform of business rates for high streets rolled out from 2026-27.
  • 40% relief for retail, hospitality and leisure, up to a cap of £110,000 per business 2025-26 (reduced from 75%).
  • Small business multiplier to be frozen next year.
  • Funded by introducing a higher multiplier for the most valuable properties, such as distribution warehouses used by online giants.

 Increase in National Minimum and Living Wage 

  • National Living Wage to increase from £11.44 to £12.21 an hour from April 2025, up 6.7%.
  • National Minimum Wage for 18 to 20-year-olds to rise from £8.60 to £10.00 an hour, up 16.3%.

 Tax for employees  

  • No increase in income tax and national insurance contributions for employees.
  • Income tax thresholds remain frozen as announced in the Spring budget until 2028.
  • Thresholds to increase with inflation from 2028/29 tax year.

 Change in insurance increase for businesses  

  • Rate of employer national insurance to increase by 1.2%, from 13.8% to 15% from 6 April 2025.
  • Secondary threshold – the level at which employers start to pay national insurance on each employee’s salary – to fall from £9,100 per year to £5,000 per year.
  • Employment allowance to increase to £10,500 from £5,000.

 Unchanged corporation tax  

  • Corporation tax to stay capped at 25%.
  • Small profits rate and marginal relief to stay at current rate and thresholds – no changes in corporation tax for SMEs.

 Continued Entrepreneurs Relief  

  • Business asset disposal relief (Entrepreneurs Relief) to stay at 10% this year, increasing to 18% from 6 April 2026.
  • Lifetime allowance for business asset disposal relief to stay at £1 million.

Retail crime 

  • 13,000 additional PCSOs to tackle neighbourhood policing and additional funding to help police tackle shoplifting and organised retail crime.

Other - transforming business rates

  • A business rates discussion paper has been published setting out the priority areas for reform and next steps, which include data transparency, shortening periods between revaluations, improvement relief, with an initial engagement phase pre Christmas 2024. 
  • View the paper on the Government website here: Transforming business rates - GOV.UK