The Chancellor of the Exchequer, Rachel Reeves, today presented the Autumn Budget Statement to Parliament, a mixed bag for Knightsbridge businesses. While there is welcome relief for retail, hospitality and leisure operators, the measures are overshadowed by looming cost increases. Larger properties face higher business rates from 2026 and the prospect of a tourist tax adds further uncertainty. Combined with rising wages and operating costs, this package risks undermining Knightsbridge’s global competitiveness at a time when stability and investment are most needed.

“This Budget places disproportionate pressure on Knightsbridge’s flagship businesses. Relief for retail, hospitality and leisure is welcome, but higher rates through banded multipliers and tourist tax risk undermining Knightsbridge’s global appeal, while added operating costs can only hurt an industry that contributes so much to the UK’s economy and reputation. We urge the government, yet again, to work with us on a fairer system that recognises this contribution, protects competitiveness, and keeps London a world leading destination.” – Steven Medway, CEO Knightsbridge Partnership

Here’s your summary of the most important issues facing businesses in Knightsbridge: 

Business Rates Reform

• From April 2026 the government will introduce a new banded multiplier system.
• Properties with a rateable value (RV) under £500,000 in the retail, hospitality and leisure sectors will benefit from permanently lower multipliers, set 5p below the national standard multiplier. This replaces the temporary 40% relief (capped at £110,000 per business) that runs until 2025–26.
• RHL roperties under £500,000 and above will face a new high‑value multiplier, set 8p above the national standard multiplier.
• In Knightsbridge, virtually every commercial property sits above this threshold, meaning flagship retailers and premium hospitality venues will be hit hardest. The government knows this, yet has chosen to design a system that punishes the very businesses that contribute most to the UK’s economy, jobs, and international reputation.

Retail, Hospitality & Leisure Relief 

• The 40% discount on business rates for retail, hospitality and leisure is be in place until 2025–26, capped at £110,000 per business.
• From 2026–27, this temporary relief will be replaced by the new permanent lower multiplier for properties under £500,000 RV.
• Smaller boutiques and independent restaurants gain certainty, but flagship Knightsbridge businesses remain exposed.

Tourist Tax Proposal 

• Consultation runs until February 2026 on a proposed overnight tourist levy; mayors will then have powers to introduce an overnight stay levy. 
• If adopted in London, Knightsbridge’s premium hotels and short-stay providers would face new charges. 
• This risks deterring international visitors, alongside the lack of VAT-Free shopping. 
• To share your feedback on the consultation, visit the Government website here.

Operating Costs 

• From April 2026, the National Living Wage rises to £12.71/hr for workers aged 21+. 
• While we support the living wage in principle, this, alongside higher rates and potential levies, will squeeze margins further for businesses. 

Our Commitment 

As a member of High Streets UK, we stand firming in our commitment to press the Government to recognise the unique pressures facing flagship destinations like Knightsbridge and acknowledge the contribution that it makes to the UK economy. Relief measures alone are not enough when paired with rising rates, capped support, and potential levies. Our advocacy priorities are clear: 

• Freeze on multiplier increases until 2027/28; giving businesses breathing space to adapt and invest, rather than being hit with sudden, steep rises. 

• Exemptions for retail, hospitality and leisure businesses from punitive rate hikes, regardless of business size, recognising that these sectors are the backbone of Knightsbridge’s global appeal and should not be penalised for their success. 

• Transparent consultation on tourist levies; ensuring that any overnight stay tax is shaped with direct input from the businesses it affects, protecting London’s competitiveness against rival global cities. 

Our commitment is to fight for a fairer system that protects competitiveness, sustains investment, and secures Knightsbridge’s position as a world-leading destination.