The 2027 changes at a glance

• Already live (since 1 April 2026): business rates revaluation and new multipliers for retail, hospitality and leisure (RHL). Lower multipliers apply to RHL properties under £500k rateable value, and the old 40% RHL relief has ended.
• April 2027: the National Living Wage rises to £13.21 (up 50p, 3.9%). That is around £910 more a year for each full-time adult employee, before employer NICs and pension.
• Spring 2027 (expected): Martyn's Law duties begin. Venues expecting 200+ people at once need public protection procedures.
• 2027 at the earliest: a ban on upward-only rent reviews in new commercial leases and renewals.

How much will staff cost in 2027?

The National Living Wage for workers aged 21 and over rises from £12.71 to £13.21 an hour in April 2027. The rate for 18 to 20 year olds rises to £11.27. For a full-time worker that is worth around £910 a year, according to the CIPP.

If you employ five full-time staff on the minimum, budget at least £4,500 more in 2027 before National Insurance and pension costs. Smaller sites and leaner teams are the most direct way to offset this. That is one reason pub residencies and dark kitchens appeal: no front-of-house team to staff.

What business rates will a restaurant or takeaway pay?

In England, 2026/27 bills use new multipliers (Scotland and Wales set their own rates). In pence per £1 of rateable value:

• Small (RV under £51,000): 38.2p for retail, hospitality and leisure; 43.2p for other businesses.
• Standard (RV under £500,000): 43p for retail, hospitality and leisure; 48p for other businesses.
• High value (RV £500,000+): 50.8p for all.

The temporary 40% RHL relief ended on 31 March 2026. Your bill now depends on your new rateable value and these lower multipliers. Small business rate relief may still apply.

When you rent a kitchen on a licence, check who pays the rates. In many pub kitchens and shared spaces the host stays responsible and builds it into the fee. That makes your monthly cost easier to predict.

Does Martyn's Law apply to my food business?

Only if your premises can reasonably expect 200 or more people at the same time. Duties are expected to start in spring 2027. Standard-tier premises (200 to 799 people) must have procedures for evacuation, invacuation, lockdown and communication. They must also train relevant staff and notify the Security Industry Authority. Premises with 800+ people have extra duties.

Most takeaways, dark kitchens and small cafés fall below the threshold. If you trade inside a larger venue, such as a food hall or big pub, the venue's operator is usually responsible. Ask how you fit into their plan.

What does the upward-only rent review ban mean for you?

It makes long leases fairer to tenants, but not yet. The English devolution legislation carrying the ban received Royal Assent on 29 April 2026. The ban isn't expected to start before 2027. It applies to new business leases and renewals, not existing ones. Pre-agreed stepped rents are still allowed. If you are negotiating a lease now, ask your solicitor how the timing affects your rent review clause.

How can you keep 2027 costs under control?

1. Rent space that's already fitted. Fit-out is often the largest upfront cost, and a fitted kitchen removes it.
2. Choose a licence over a lease while you grow. Shorter commitments mean you can move or scale without being tied in.
3. Check what's included. Utilities, rates and service charges vary by space, so compare the true monthly cost.
4. Size your team to your site. Delivery-only or residency models need fewer staff.
5. Price for 2027 now. Update menus before April, not after.

FAQs

What is the National Living Wage in April 2027?

£13.21 an hour for workers aged 21 and over, up from £12.71.

Is there still business rates relief for hospitality in 2026/27?

The 40% RHL relief ended on 31 March 2026. It has been replaced by permanently lower multipliers for retail, hospitality and leisure properties under £500,000 rateable value.

When does Martyn's Law come into force?

Duties are expected to take effect in spring 2027. They apply to premises expecting 200 or more people at once.

Is it cheaper to rent a kitchen or lease a restaurant in 2027?

Renting a fitted kitchen on a licence is usually cheaper upfront. There is no premium, no fit-out and a shorter commitment.

Beat 2027 costs with a space that's ready to cook in. Browse kitchens on Oya. It's free to search and book viewings.

Sources: GOV.UK minimum wage rates for 2027; CIPP; Cambridge City Council business rates 2026/27; Travers Smith on Martyn's Law; Mishcon de Reya on the rent review ban; NIQ Hospitality Market Monitor.

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