Budget 2026: What Yard Owners Need to Know

The latest budget announcement brings yet more changes for equestrian businesses to get their heads around. With higher wage costs, updates to business rates and other financial shifts on the horizon, many yards, riding schools and equestrian centres will once again need to reassess how they operate and where they can tighten their belts. For an industry already juggling rising bills, staffing pressures and ongoing uncertainty, these new measures add another layer of challenge and will likely push many owners to take a fresh look at their costs, pricing and long-term plans to stay sustainable.

National Minimum Wage Increases

The government has announced a significant increase in the National Minimum Wage from April 2026. The changes, coming on top of the planned increase in employers’ National Insurance contributions in April 2025, will increase the cost of employing staff and are expected to place further pressure on businesses already struggling with recruitment, retention, and rising employment responsibilities. The new rates are:

• National Living Wage (21+): £12.71 per hour, up 4.1%
• 18–20 year olds: £10.85 per hour, up 8.5%
• 16–17 year olds: £8.00 per hour, up 6.0%
• Apprentices: £8.00 per hour, up 6.0%

The Low Pay Commission Response Survey, carried out this summer by the Equestrian Employers Association, highlighted the risks the industry faces if NMW rates continue to rise. Employer responses included concerns about age discrimination claims as businesses increasingly recruit younger staff due to affordability pressures, lack of job availability, further non-compliance with legislation, and the potential loss of equestrian businesses altogether.

Business Rates Changes

In addition, business rates in England will be updated from 1 April 2026 to reflect changes in property values since 2023, which is likely to increase the majority of bills. The budget also introduced long-term support for retail, hospitality, and leisure (RHL) businesses by creating two permanently lower business rates multipliers for eligible RHL properties with rateable values below £500,000. Over 750,000 properties, including shops and pubs, are expected to benefit.

There has been ongoing discussion about whether equestrian businesses fall within the “leisure” sector. During the Covid-19 pandemic, the Sport and Recreation Alliance confirmed to British Equestrian that riding schools, livery yards, and competition centres fall under the category of businesses “for assembly and leisure,” provided they are normally open to the public. As such, these businesses should reasonably be eligible for the announced business rates relief, although local application can still vary.

Tourism Levy

The Chancellor announced that English regions will have the power to introduce a tourism levy on overnight stays, with the exact amount to be decided following a government consultation. Early indications suggest a fixed charge of around £2 per person, per night. For equestrian businesses offering riding holidays, B&Bs, or other tourist accommodation, this could add costs, impact bookings, and affect competitiveness.

Inheritance Tax Changes

From April, married couples, civil partners, or those with deceased spouses will be able to transfer their inheritance tax allowance of up to £1 million to their partner, meaning a total of £2 million can be passed on without tax. While this change is welcomed by some and offers long-term planning benefits, it does not alleviate the immediate financial pressures on businesses, and some families may still face tough decisions around selling land or equipment to meet bills.

Moving Forwards

These changes will have both financial and logistical impacts on equestrian businesses, whether livery yards, riding schools, or mixed-purpose equestrian establishments. With the industry already facing rising costs and a staffing crisis, these measures are likely to add further stress, potentially contributing to the closure of much-loved equestrian facilities. Overall, the budget highlights the urgent need for long-term, meaningful support for rural and equestrian businesses, ensuring they can continue to operate sustainably, retain skilled staff, and provide high standards of care and service for the horses in their charge.

Need help understanding the sustainability of your business, financial planning or employment?

Resources, templates and support are available on the LiveryList Yard Owner Hub, helping yard owners to find the support and resources needed to run a safe, compliant and professional business.

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