UK's Healey raises business rates threshold for small firms

LONDON, Oct 28 (Reuters) - British finance minister John Healey said on Wednesday he would raise the threshold at which small companies start paying business rates.

"I'm increasing the threshold for Small Business Rate Relief for retail hospitality and leisure businesses from £12,000 to £18,000 ($15,900-$23,900)," Healey said in his budget speech to parliament.

The figures relate to "rateable value", the estimated annual rental value of a commercial property.

Healey said the move will mean 70,000 businesses will not pay any business rates - a property tax charged on commercial properties to fund local services.

He said other businesses in the retail, hospitality and leisure sectors would see their rates frozen in real terms.

Prime Minister Andy Burnham had said in July he would lower business rates for pubs, clubs and live music venues by 20% from April 2027.

($1 = 0.7527 pounds)

(Reporting by David Milliken, writing by James Davey; Editing by Toby Chopra)