The Energy Observer is a regular market update designed to help small businesses stay informed about the key forces shaping energy prices. It breaks down complex industry developments, such as policy changes, global events and market trends, into clear insights and practical takeaways, helping small businesses make smarter decisions around energy contracts, costs and efficiency.

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Running a business isn't getting any easier, but the Government's Autumn Budget 2026 has introduced several measures that could help reduce costs and support growth over the next few years.

From business rates relief to support with energy costs, here's what you need to know for small businesses: 

Business Rates Support for High Streets

If you run a shop or a hospitality business, there could be some welcome savings on the way.

The Government has increased the thresholds for Small Business Rates Relief, meaning around 70,000 more businesses could qualify for support. For many retail, hospitality and leisure businesses, business rates will either be reduced or removed entirely.

Business rates bills for eligible businesses will also be frozen in real terms for the next two years.

Support for small businesses and landlord supplies

Several tax changes have been announced to encourage entrepreneurship and investment:

• A new 10% Capital Gains Tax rate for eligible founders of innovative, high-growth businesses from April 2027.
• The tax-free trading allowance will increase from £1,000 to £3,000.
• Enhanced capital allowances will support businesses investing in equipment, machinery and growth.

New help with energy costs

One of the biggest announcements for business energy users is the introduction of the British Industrial Competitiveness Scheme (BICS).

From April 2027, eligible electricity-intensive businesses could see their electricity costs reduced by up to 25%. More than 10,000 businesses are expected to benefit, helping UK companies remain competitive while managing rising operating costs.

While the scheme is mainly aimed at energy-intensive sectors and qualifying supply chains, it represents one of the largest interventions in business energy costs in recent years.

What should small businesses do now?

While some measures won't take effect until 2027, there are steps businesses can take now to prepare:

• Review your business rates position.
• Check whether you could qualify for current or future relief schemes.
• Plan for upcoming wage increases.
• Stay up to date with energy support announcements and eligibility criteria.

We'll continue to monitor developments and share updates as more details become available.

Our new Energy Alert and monthly Energy Observer will keep you informed with the latest energy, policy and business news affecting small businesses s across the UK. 

What about energy payments and support for UK households?

Yes; Millions of households are checking their Council Tax bands after Chancellor John Healey announced a new £100 Household Energy Payment to help with rising energy costs. Around 20 million households in England living in Council Tax Bands A to D are expected to be eligible for the support, with payments due from January 2027. 

Need help managing your energy costs?

Whether you're looking to better understand your bills, submit a meter reading, or explore ways to improve energy efficiency, EDF is here to help. Visit your Energy Hub or MyAccount to keep track of your energy use and access personalised support.

Information correct at the time of publication. Eligibility criteria and payment arrangements may be updated by the Government and local authorities. For more, visit Autumn Budget 2026.