Independent convenience retailers could benefit from the Government’s new high street strategy, which promises expanded business rates relief, increased funding to tackle illicit tobacco and vape sales, and tougher action against retail crime.
The October 2026 Hope on the High Street strategy pulished this week aims to give local businesses a fairer and safer trading environment, with around 70,000 additional high street businesses in England expected to be taken out of business rates from April 2027.
Published by the Ministry of Housing, Communities and Local Government, Hope on the High Street sets out a series of measures aimed at supporting independent businesses, tackling rising operating costs and making town centres safer and more attractive to shoppers.
The Government said the strategy recognises the importance of independent traders and entrepreneurs in creating distinctive, resilient high streets, with local businesses expected to play a central role in their regeneration.
Business rates relief for qualifying retailers
One of the key announcements concerns business rates, with the Government saying around 70,000 additional high street businesses in England will be taken out of business rates from April 2027.
The threshold for 100% Small Business Rates Relief (SBRR) for qualifying retail, hospitality and leisure (RHL) properties will increase from a rateable value of £12,000 to £18,000. The threshold for tapered relief will also rise from £15,000 to £21,000.
In addition, qualifying RHL properties will receive a real-terms freeze on business rates bills in 2027-28 and 2028-29. The Government estimates that half of all RHL properties in England will pay no business rates under the package.
The strategy also includes a ban on upwards-only rent reviews in commercial leases, alongside plans to remove fees for lodging Valuation Tribunal appeals.
Councils to get greater control over vape and gambling shops
The Government is proposing changes that would give local authorities greater control over the types of businesses opening on their high streets.
Subject to consultation, new vape shops will be required to obtain planning permission, giving councils and communities a greater say over where they can operate.
Similar planning requirements are proposed for new adult gaming centres, while the Government also plans to remove the 'aim to permit' principle that currently influences councils' decisions on gambling licences.
Gambling Impact Assessments will come into force in November, allowing licensing authorities to consider local evidence around crime, deprivation, anti-social behaviour and public health when assessing applications.
The strategy also proposes a retail licensing scheme for tobacco, vape and nicotine-product retailers, aimed at strengthening enforcement and supporting responsible businesses.
From April 2027, vape shops and adult gaming centres in England will lose eligibility for Retail, Hospitality and Leisure business rates multipliers. Vape shops will also lose eligibility for Small Business Rates Relief.
More funding to tackle illicit tobacco and organised crime
The strategy places significant emphasis on tackling organised criminal activity on high streets, including businesses being used to sell illicit goods or launder criminal proceeds.
The Government has committed up to £30 million in new annual funding for enforcement agencies, including Trading Standards, Border Force and HMRC, until 2028/29. The funding will support action against the illicit and underage sale of tobacco and vapes, alongside the implementation of the Tobacco and Vapes Act.
This includes the recruitment of 120 new Trading Standards apprentices. A further £2 million annually until 2028/29 will support Trading Standards in tackling organised crime on high streets.
The report also highlights the scale of the retail crime problem. Retail crime cost businesses more than £583 million in known theft and damage during 2024/25, while around 510,000 shop theft offences were recorded in England and Wales in the year ending March 2026.
Although this represented a 4% fall on the previous year, shop theft levels remained 48% higher than in 2023.
To address the problem, the Government is backing its Tackling Retail Crime Together Strategy and investing £5 million in the National Police Chiefs' Council's Operations Police-Led Intelligence Network (OPAL). It has also introduced a standalone offence of assaulting a retail worker and removed the previous £200 threshold for shop theft.
Under the Neighbourhood Policing Guarantee, every neighbourhood will have named and contactable officers. New measures under the Crime and Policing Act will also give police and councils stronger powers to tackle anti-social behaviour, including longer dispersal directions and stronger closure powers against premises linked to persistent nuisance and disorder.
Investment in high street regeneration
Beyond direct business support and enforcement, the strategy sets out plans to bring vacant and derelict properties back into productive use.
This includes a new £125 million Derelict Buildings Fund and £10 million to accelerate the use of High Street Rental Auctions, which allow councils to tackle long-term vacant commercial premises.
The Government is also backing a £100 million Post Office transformation programme, while supporting the rollout of 350 banking hubs by the end of the Parliament.
A new 'High Streets First' principle will encourage government departments and public bodies to locate services and buildings in town centres, helping generate additional footfall for surrounding businesses.
The strategy is built around six pillars: active leadership and management; strong businesses and amenities; vibrant culture and leisure; better connectivity; safer and cleaner high streets; and more homes in town centres.
The Government acknowledged that high streets face different challenges depending on their location and customer base, adding that there is no one-size-fits-all solution to regeneration.
It also highlighted the economic importance of these locations, noting that more than 4.4 million people were employed in businesses on British high streets in 2024.
An important geographical distinction: while the strategy sets out a national vision, many of its policy measures apply to England only, reflecting devolved powers in Scotland, Wales and Northern Ireland.