Measure
From April 2027, qualifying retail, hospitality and leisure (RHL) properties in England will receive a two-year real-terms freeze in business rates bills, with increases capped at CPI inflation. Protection excludes increases arising from property improvements or the loss of other reliefs.
Alongside the freeze, businesses previously receiving 2023 Supporting Small Business relief will receive another year of protection through the 2026 scheme. To partly fund the package, the existing 1p Transitional Relief Supplement will continue for a further two years.
For qualifying RHL occupiers facing rising bills, the freeze will limit increases during the remaining two years of the current revaluation cycle. Around 37,000 small and independent ratepayers are expected to benefit from the Supporting Small Business extension. Businesses whose bill increases would otherwise fall below the Transitional Relief and Supporting Small Business caps will continue to pay the supplement.
From 1 April 2027, the bills freeze and supplement extension will apply for 2027/28 and 2028/29, with the additional Supporting Small Business protection covering 2027/28.
By limiting increases for two years, the package should give businesses greater relief for significant cost. However, their bills can still rise with inflation, while extending the supplement means other ratepayers will continue to contribute towards this protection.
With temporary support layered over multiple existing reliefs, clear guidance on how the schemes interact will be essential. Ahead of the 2029 revaluation, businesses will also need clarity about how support will end to avoid another sharp increase in bills.