Despite the government’s promises to support the rural sector, the latest budget falls short of delivering meaningful assistance for rural community businesses, including equestrian operations. Many yard owners are already facing reduced staffing or reconsidering how they provide their services—the very activities that underpin their income and day-to-day operations.
Rising National Minimum Wage costs, changes to taxes, and increased employer contributions add further pressure to an industry already at a critical point. Many yards are struggling with viability, recruitment, and retention of skilled staff, and these increases make it even harder to maintain experienced teams capable of delivering high-quality care and services, an dlmean that funds have to be stretched further to support the business.
- Rising employment costs — The government has increased the National Living Wage and employer costs across the board. Starting April 2026 the National Living Wage will rise to £12.71/hr, and rising employer contributions and wage bills will hit those yards who employ staff hard.
- Tax and asset‑value changes on rural and agricultural properties — For those with equestrian businesses or farms, changes to tax reliefs on agricultural and business properties, including shifting relief thresholds and increasing charges on high‑value properties, add layers of financial risk and unpredictability.
- Rising costs for property income, savings and investments — New tax hikes on savings, dividends and property income reduce flexibility for business owners who rely on diversified income streams or savings to support their yard.
Energy, feed, and maintenance costs continue to rise, making it increasingly difficult for yards to balance their books while maintaining high welfare and service standards.
Business rates in England will be updated to reflect changes in property values that have happened since 2023 on 1 April 2026, causing the majority of bills to increase. While the government has announced a permanent lowering of business rates for 750,000 retail, hospitality, and leisure (RHL) businesses—valued at over £900 million annually—its application to equestrian operations remains inconsistent. Many local authorities do not currently apply reliefs to equestrian businesses, even though Sport and Recreation guidance confirms they are included. Only properties with a rateable value over £500,000 are likely to see a significant change under this measure.
The Chancellor also announced that English regions will have the power to introduce a tourism levy on overnight stays, with the exact amount to be determined following a government consultation. Early indications suggest this could be a fixed charge of around £2 per person, per night. For equestrian businesses that offer riding holidays, B&Bs, or other tourist accommodation, this additional cost could impact pricing, bookings, and overall competitiveness. While modest on an individual basis, the levy may add up for families or larger groups, potentially affecting the attractiveness of rural equestrian tourism and placing another administrative and financial consideration on already stretched business operations.
On a more positive note, the Chancellor confirmed that £725 million will be made available through the Growth and Skills Levy to fully fund apprenticeships for under-25s at small and medium-sized enterprises.
Additionally, from April 2029 all VAT invoices will need to be issued in a specified electronic format, in line with the Making Tax Digital scheme.
These developments underline the urgent need for an industry overhaul. Yard owners need a framework that allows them to set fair, sustainable pricing, cover operational costs, and secure the long-term viability of their businesses. Without meaningful support, many smaller yards risk closure, and the welfare and standards of horses could be compromised.
Support, guidance, and advocacy across the sector are more critical than ever to ensure yard owners can confidently navigate these financial pressures while continuing to provide safe, professional services.