Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an estimate of the potential revenue effect to the public purse of increasing the Small Business Rates Relief threshold from £12,000 to £17,000 in 2026.

This question was answered on 4th December 2025
Small Business Rate Relief (SBRR) is available to businesses with a single property below a set RV. Eligible property under £12,000 will receive 100 per cent relief, which means around a third of properties in England pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000.

The Government is supporting small businesses to grow. At Budget, the Government announced the extension of SBRR so that businesses opening second premises after Budget day can retain their SBRR for three years, tripling the current allowance.