Small Businesses: Business Rates
The question
To ask the Chancellor of the Exchequer, if she will make it her policy to retain Small Business Rates Relief at its current level for the duration of this Parliament.
Answered by James Murray
Small Business Rate Relief (SBRR) is available to businesses with a single property with a rateable value (RV) below the threshold of £15,000. If a business expands to a second property, it retains SBRR on the first property for 12 months. Following that, the business is not eligible for SBRR unless additional properties have an RV below £2,899 and their total property portfolio has an RV below £20,000 (£28,000 in London). Currently, over a third of properties (more than 700,000) pay no business rates as they receive 100 per cent SBRR, with an additional c.60,000 benefiting from reduced bills as this relief tapers.
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.
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