Business rates reductions and exemptions

1 April 2026 to 31 March 2029

The Government is providing funding to local authorities so that they can provide relief to those ratepayers facing large increases in business rates charge at the 2026 revaluation, as a result of losing some or all of their:

• Small Business Rates Relief
• 2025/2026 40% Retail, Hospitality and Leisure Relief, and/or;
• 2023 Supporting Small Business Relief

This relief is in addition to the Transitional Relief arrangements introduced 1 April 2026.

Entitlement to Supporting Small Business Relief is automatically calculated and granted to eligible ratepayers.

Please note that this relief will cease at the end of the 2028/2029 financial year.

This relief is administered under the local discount powers contained in Section 47 of the Local Government Finance Act 1988.

Eligibility criteria

• Entitlement to Small Business Rate Relief, 2025/2026 Retail, Hospitality and Leisure Relief or 2023 Supporting Small Business Relief been lost wholly or in part at the 2026 Revaluation.
• The property is occupied.
• Subject to Subsidy limits.

Exclusions

• The property is unoccupied.
• The property is occupied by a charity or a Community Amateur Sports Club.
• Ratepayers who received 2023 Supporting Small Businesses Relief in financial year 2025/2026 are not eligible for 2023 Supporting Small Business Relief from financial year 2027/2028 onwards.
• Ratepayers who lost entitlement to Small Business Rates Relief during financial year 2025/2026 due to failing the second property test, but have, under the rules for Small Business Rates Relief, been given a 12 month period of grace before their relief ended (or from 27 November 2025 3 years) can only continue on the 32026 Supporting Small Business Relief scheme for the remainder of their period of grace.   

1 April 2023 to 31 March 2026

The Government is providing funding to local authorities so that they can provide relief to those ratepayers facing large increases in business rates charge as a result of the loss of Small Business Rates Relief or 2017 Supporting Small Business Relief at the 2023 revaluation. This relief is in addition to the Transitional Relief arrangements introduced 1 April 2023.

Entitlement to Supporting Small Business Relief is automatically calculated and granted to eligible ratepayers.

Please note that this relief will cease at the end of the 2025/2026 financial year.

This relief is administered under the local discount powers contained in Section 47 of the Local Government Finance Act 1988.

Eligibility criteria

• Entitlement to Small Business Rate Relief or 2017 Supporting Small Business Relief been lost wholly or in part at the 2023 Revaluation.
• The property is occupied.
• Subject to Subsidy limits.

Exclusions

• The property is unoccupied.
• The property is occupied by a charity or a Community Amateur Sports Club.
• Ratepayers who received 2017 Supporting Small Businesses Relief in financial year 2022/2023 are not eligible for 2023 Supporting Small Business Relief from financial year 2024/2025 onwards.  

For more information please read the Policy for all Discretionary Relief (excluding charities & not for profit organisations)