Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, if he will modify the Business Rates Information Letter (5/2025) sent to English Billing Authorities on 26 November so that that the formula for the calculation of Transitional Relief calculates 2025-26 BL as A multiplied by M minus RHL relief where applicable.

At the Budget the Chancellor announced a Transitional Relief Scheme and a Supporting Small Business Relief scheme – both of which help ratepayers that are seeing significant bill increases as a result of the 2026 business rates revaluation.

The 2026 Supporting Small Business Relief Scheme provides support for ratepayer losing certain reliefs including the current 40% relief for Retail, Hospitality and Leisure. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

As is made clear in paragraph 8(b) of the Annex to the Business Rates Information Letter issued on 26 November, the Base Liability (BL) within the Supporting Small Business Relief Scheme will reflect any Small Business Rate Relief, Rural Rate Relief, 2023 Supporting Small Business Relief or 2025/26 Retail Hospitality and Leisure relief applicable at 31/3/26.