Reliefs and reductions

4. Supporting Small Businesses

In the Spring Budget 2017 the Chancellor announced that a scheme of relief would be made available to those ratepayers facing large increases as a result of the loss of small business rate relief following the 2017 revaluation.

The transitional relief scheme does not provide support in respect of changes in reliefs. The supporting small businesses relief helped those ratepayers who, as a result of the change in their rateable value at the revaluation, lost some or all of their small business rate relief and, as a result, are facing large increases in their bills.  To support these ratepayers, the supporting small businesses relief ensures that the increase in the bills (before the multiplier supplement) of these ratepayers is limited to the greater of

  • a cash value of £600 per year (£50 per month).  This cash minimum increase ensures that those ratepayers currently paying nothing or very small amounts are brought into pay something, or
  • the matching cap on increases for small properties in the transitional scheme.

At the Budget on 27 October 2021, the government announced that it would extend the supporting small business scheme for one year to the end of the current revaluation cycle.  The scheme will restrict increases in bills to 15% for businesses with small properties (up to and including £20,000 rateable value) and 25% for medium properties (up to and including £100,000 rateable value).

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Supporting Small Businesses Scheme Policy (XML)