Small Businesses: Business Rates
The question
To ask the Chancellor of the Exchequer, whether she plans to review the thresholds for Small Business Rate Relief to reflect changes in rateable values ahead of the 2026 revaluation.
Answered by James Murray
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Transforming Business Rates Discussion Paper published at Autumn Budget 2024, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →