Small businesses across Street and Glastonbury are facing a mix of relief, uncertainty and added costs following the Autumn Budget, according to the Somerset Chamber of Commerce and local trade groups.

Rachel Reeves' first budget as Chancellor includes permanent business rate cuts for retail, hospitality and leisure premises from 2026, alongside higher national wages and frozen tax thresholds. Local leaders say the changes will affect high streets, tourism and employers across Mendip.

The Glastonbury and Street Chamber of Trade and Commerce said the measures bring "relief, pressure, and opportunity ahead" — but noted rising staff costs will hit hospitality hard.

"This Budget brings mixed news for small businesses across Street and Glastonbury," said Laura Harrison, co-chair of the Street and Glastonbury Chamber of Commerce.

"Retailers, cafés, pubs and tourism venues will welcome the permanent cut to business rates from 2026 — that's much-needed relief for high-street and rural operators. But the rise in the National Living Wage to £12.71 will push up staffing costs, particularly for hospitality and seasonal employers already under pressure.

"The new tourist tax powers could shift visitor behaviour nationally — if cities like Bath and Bristol introduce levies first, it might benefit rural areas like ours.

" But it's unclear where that money would go if introduced locally. Investment incentives are good news for makers and creative start-ups, but frozen tax thresholds and tighter HMRC enforcement mean sole traders need to stay sharp. It's a mix of relief, pressure, and opportunity."

Somerset Chamber: 'Little to boost business confidence'

Somerset Chamber of Commerce Managing Director David Crew said the budget fell short of expectations: "For all the pre-Budget leaks and commentary, when it came down to it there was little to boost business confidence or economic growth."

He welcomed the absence of new business taxes but warned that previously announced rises in the National Living and Minimum Wage will increase pressure.

"Although I know many business owners will be scratching their head as to how they can soak up another national minimum wage rise on top of everything else going up in their overheads… margins are already squeezed and many are operating under capacity due to holding back on hiring."

He said businesses are "consistently struggling" to recruit skilled staff and backed the Chancellor's pledge to remove training costs for apprentices under 25 and fund a new 'youth guarantee' scheme.

"Anything that will help the next generation be business-ready is good news — although whether businesses have the budget or capacity in the short term to offer these opportunities remains to be seen."

Key measures affecting local businesses

• National Living Wage to rise to £12.71 from April 2026
• Business rate relief made permanent for 750,000 RHL properties
• Income tax and national insurance thresholds frozen until 2028
• Training costs scrapped for apprentices under 25
• Tourist tax powers devolved to local authorities (not currently planned in Somerset)
• Investment relief and customs duty changes to support domestic firms

Also included were tax rises on property income and a £2,000 cap on salary-sacrifice pensions. ISA allowances will be cut from 2027. Small employers may need to adapt quickly.

Both Chambers urged firms to review payroll plans, explore new youth recruitment schemes, and prepare for a more compliance-focused HMRC environment.

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