Measure

Extension of Small Business Rate Relief

The measure

For qualifying retail, hospitality and leisure properties in England, the rateable value threshold for full Small Business Rate Relief will increase from £12,000 to £18,000. The upper threshold for tapered relief will also rise from £15,000 to £21,000.

 

Who will be affected?

Small businesses occupying qualifying retail, hospitality and leisure premises in England, including shops, pubs, restaurants, cafes and hairdressers. Vape shops will be excluded. According to government estimates, around 70,000 additional businesses will pay no business rates.

 

When will the measure come into effect?

From 1 April 2027, with the thresholds kept under review alongside the 2029 revaluation.

Our view

For small high street businesses facing pressure on operating costs, the higher thresholds should provide welcome support and improve cash flow. Alongside this relief, we would welcome a wider review of business rates to ensure the system reflects the modern economy and supports investment and growth.