Treasury written question – answered at on 16 July 2025.
Gavin Williamson
Conservative, Stone, Great Wyrley and Penkridge
To ask the Chancellor of the exchequer, what estimate her Department has made of the number of businesses that will no longer be eligible for Small Business Rate Relief as a result of inflationary and revaluation-driven increases in rateable values at the 2026 revaluation.
James Murray
The Exchequer Secretary
Small Business Rate Relief (SBRR) is available to businesses with a single property with a rateable value (RV) below the threshold of £15,000. If a business expands to a second property, it retains SBRR on the first property for 12 months. Following that, the business is not eligible for SBRR unless additional properties have an RV below £2,899 and their total property portfolio has an RV below £20,000 (£28,000 in London).
Currently, over a third of properties (more than 700,000) pay no business rates as they receive 100 per cent SBRR, with an additional c.60,000 benefiting from reduced Bills as this relief tapers.
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.
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