Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what support is available to small businesses affected by changes in Small Business Rate Relief.

Every three years, all commercial properties are revalued by the Valuation Office Agency (VOA). The 2026 revaluation, which will take effect from April 2026, will update RVs and may, therefore, affect businesses’ eligibility for SBRR. The revaluation process is ongoing and the VOA are required to publish a draft of all properties’ new RVs this year.

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 properties 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, benefitting an additional c.60,000 properties.

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, 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.

The Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.