diff --git a/.github/workflows/deploy_packages.yml b/.github/workflows/deploy_packages.yml
index 17bab504b4..c21b7b7106 100644
--- a/.github/workflows/deploy_packages.yml
+++ b/.github/workflows/deploy_packages.yml
@@ -201,7 +201,7 @@ jobs:
         env:
           NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
 
-      # Creates the next available tag with format "release-<year>-<month>-<day>[.<n>]"
+      # Grabs the version in the root package.json and creates a tag on GitHub
       - name: Create a release tag
         id: create_tag
         run: node scripts/create-release-tag.js
diff --git a/package.json b/package.json
index d30453add0..345de5770d 100644
--- a/package.json
+++ b/package.json
@@ -73,6 +73,7 @@
     "lint-staged": "^12.2.0",
     "minimist": "^1.2.5",
     "prettier": "^2.2.1",
+    "semver": "^7.3.2",
     "shx": "^0.3.2",
     "ts-node": "^10.4.0",
     "typescript": "~4.5.4",
diff --git a/scripts/create-release-tag.js b/scripts/create-release-tag.js
index aa06464958..a71afe513b 100755
--- a/scripts/create-release-tag.js
+++ b/scripts/create-release-tag.js
@@ -34,26 +34,12 @@ async function main() {
 
   const octokit = new Octokit({ auth: GITHUB_TOKEN });
 
-  const date = new Date();
-  const yyyy = date.getUTCFullYear();
-  const mm = String(date.getUTCMonth() + 1).padStart(2, '0');
-  const dd = String(date.getUTCDate()).padStart(2, '0');
-  const baseTagName = `release-${yyyy}-${mm}-${dd}`;
+  const rootPath = path.resolve(__dirname, '..');
+  const { version: currentVersion } = await fs.readJson(
+    path.join(rootPath, 'package.json'),
+  );
 
-  console.log('Requesting existing tags');
-
-  const existingTags = await octokit.repos.listTags({
-    ...baseOptions,
-    per_page: 100,
-  });
-  const existingTagNames = existingTags.data.map(obj => obj.name);
-
-  let tagName = baseTagName;
-  let index = 0;
-  while (existingTagNames.includes(tagName)) {
-    index += 1;
-    tagName = `${baseTagName}.${index}`;
-  }
+  const tagName = `v${currentVersion}`;
 
   console.log(`Creating release tag ${tagName}`);
 
@@ -65,11 +51,22 @@ async function main() {
     type: 'commit',
   });
 
-  await octokit.git.createRef({
-    ...baseOptions,
-    ref: `refs/tags/${tagName}`,
-    sha: annotatedTag.data.sha,
-  });
+  try {
+    await octokit.git.createRef({
+      ...baseOptions,
+      ref: `refs/tags/${tagName}`,
+      sha: annotatedTag.data.sha,
+    });
+  } catch (ex) {
+    if (
+      ex.status === 422 &&
+      ex.response.data.message === 'Reference already exists'
+    ) {
+      throw new Error(`Tag ${tagName} already exists in repository`);
+    }
+    console.error(`Tag creation for ${tagName} failed`);
+    throw ex;
+  }
 
   console.log(`::set-output name=tag_name::${tagName}`);
 }
diff --git a/scripts/prepare-release.js b/scripts/prepare-release.js
index 3d4f142a8d..dd147daca0 100755
--- a/scripts/prepare-release.js
+++ b/scripts/prepare-release.js
@@ -20,6 +20,10 @@ const fs = require('fs-extra');
 const semver = require('semver');
 const { getPackages } = require('@manypkg/get-packages');
 const path = require('path');
+const { execFile: execFileCb } = require('child_process');
+const { promisify } = require('util');
+
+const execFile = promisify(execFileCb);
 
 const DEPENDENCY_TYPES = [
   'dependencies',
@@ -28,9 +32,14 @@ const DEPENDENCY_TYPES = [
   'peerDependencies',
 ];
 
-async function main() {
+/**
+ * Bumps up the versions of packages to account for
+ * the base versions that are set in .changeset/patched.json.
+ * This may be needed when we have made emergency releases.
+ */
+async function updatePatchVersions() {
   const patchedJsonPath = path.resolve('.changeset', 'patched.json');
-  const { currentReleaseVersion } = await fs.readJSON(patchedJsonPath);
+  const { currentReleaseVersion } = await fs.readJson(patchedJsonPath);
   if (Object.keys(currentReleaseVersion).length === 0) {
     console.log('No currentReleaseVersion overrides found, skipping.');
     return;
@@ -91,7 +100,7 @@ async function main() {
     }
 
     if (hasChanges) {
-      await fs.writeJSON(path.resolve(dir, 'package.json'), packageJson, {
+      await fs.writeJson(path.resolve(dir, 'package.json'), packageJson, {
         spaces: 2,
       });
     }
@@ -104,6 +113,69 @@ async function main() {
   );
 }
 
+/**
+ * Returns the mode and tag that is currently set
+ * in the .changeset/pre.json file
+ */
+async function getPreInfo(rootPath) {
+  const pre = path.join(rootPath, '.changeset', 'pre.json');
+  if (!(await fs.pathExists(pre))) {
+    return { mode: undefined, tag: undefined };
+  }
+
+  const { mode, tag } = await fs.readJson(pre);
+  return { mode, tag };
+}
+
+/**
+ * Bumps the release version in the root package.json.
+ *
+ * This takes into account whether we're in pre-release mode or on a patch branch.
+ */
+async function updateBackstageReleaseVersion() {
+  const rootPath = path.resolve(__dirname, '..');
+  const branchName = await execFile(
+    'git',
+    ['rev-parse', '--abbrev-ref', 'HEAD'],
+    { shell: true },
+  ).then(({ stdout }) => stdout.trim());
+  const { mode: preMode, tag: preTag } = await getPreInfo(rootPath);
+
+  const packagePath = path.join(rootPath, 'package.json');
+  const package = await fs.readJson(packagePath);
+  const { version: currentVersion } = package;
+
+  let nextVersion;
+  if (branchName === 'master') {
+    if (preMode === 'pre') {
+      if (semver.prerelease(currentVersion)) {
+        nextVersion = semver.inc(currentVersion, 'pre', preTag);
+      } else {
+        nextVersion = semver.inc(currentVersion, 'preminor', preTag);
+      }
+    } else if (preMode === 'exit') {
+      nextVersion = semver.inc(currentVersion, 'patch');
+    } else {
+      nextVersion = semver.inc(currentVersion, 'minor');
+    }
+  } else {
+    if (preMode) {
+      throw new Error(`Unexpected pre mode ${preMode} on branch ${branchName}`);
+    }
+    nextVersion = semver.inc(currentVersion, 'patch');
+  }
+
+  await fs.writeJson(packagePath, {
+    ...package,
+    version: nextVersion,
+  });
+}
+
+async function main() {
+  await updatePatchVersions();
+  await updateBackstageReleaseVersion();
+}
+
 main().catch(error => {
   console.error(error.stack);
   process.exit(1);