Supporting small businesses rate relief
2026 supporting small business relief
During the Autumn Statement, 26 November 2025, the Government announced a new relief scheme to support ratepayers facing 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
- 2023 Supporting Small Business Relief
This relief is in addition to the Transitional Relief arrangements effective from 1 April 2026.
The Government is not changing legislation and will reimburse local authorities that use its discretionary powers, introduced by the Localism Act (under Section 47 of the Local Government Finance Act 1988, as amended) to grant relief in line with eligible criteria. Central Government will reimburse local authorities for their share of the discretionary relief under the rates retention scheme.
Key criteria
The increase in charge is limited to the greater of:
- £800 per year on year, or
- the relevant cap within the transitional relief scheme.
Relief will be recalculated on any changes to the rateable value.
Eligibility criteria
- The ratepayer has lost some or all entitlement to Small Business Rates relief, 2025/2026 40% Retail, Hospitality and Leisure Relief or 2023 Supporting Small Business relief.
- The property is occupied.
- Subsidy Control limits.
Exclusions
- The property is unoccupied.
- The property is occupied by a charity or Community Amateur Sports Club.
- Ratepayers who received 2023 Supporting Small Business Relief on 31 March 2026 (including those also receiving Small Business Rates Relief and/or 2025/2026 40% Retail, Hospitality and Leisure Relief on 31 March 2026) are only eligible for 2026 Supporting Small Business Rate relief for 1 year until 31 March 2027.
- 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 , 3 years) can only continue on the 2026 Supporting Small Business Relief scheme for the remainder of their period of grace.
2023 supporting small business relief
During the Autumn Statement, 17 November 2022, the Government announced a new relief scheme to support ratepayers facing 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 effective from 1 April 2023.
The Government is not changing legislation and will reimburse local authorities that use its discretionary powers, introduced by the Localism Act (under Section 47 of the Local Government Finance Act 1988, as amended) to grant relief in line with eligible criteria. Central Government will reimburse local authorities for their share of the discretionary relief under the rates retention scheme.
Key criteria
The increase on charge is limited to:
- £600 per year
- Those ratepayers on the Supporting Small Business Relief scheme whose 2023 rateable values are £51,000 or more will not be liable to pay the small business supplement.
Relief will be recalculated on any changes to the rateable value
Eligibility criteria
- The ratepayer has lost some or all entitlement to Small Business Rate Relief or 2017 Supporting Small Business Relief as a result of the 2017 revaluation or at the 2023 revaluation, as appropriate.
- The property is occupied.
- Subsidy control 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 Business Relief in financial year 2022/23 are not eligible for 2023 Supporting Small Business Relief from financial year 2024/25 onwards.
Claiming supporting small businesses rate relief
There is no application form. Entitlement to Supporting Small Businesses Relief is automatically calculated and granted to eligible ratepayers.
Notification
A revised bill will be issued showing any entitlement.