Chancellor Rachel Reeves will look at fixing the cliff edges in business rates that can discourage small business investment and growth, according to a report from HM Treasury.
Currently, when a business opens a second property, it loses access to all Small Business Rates Relief (SBRR) unless specific conditions are met. This rule can hold businesses back from expanding.
For example, a local bakery opening a small shop in the next village would face paying thousands of pounds more in business rates.
The Treasury’s interim report on business rates confirms that the government will review how SBRR can be improved to support growth. The aim is to encourage expansion, raise living standards, and strengthen opportunities for those working in small businesses.
Chancellor of the Exchequer, Rachel Reeves, said:
‘Our economy isn’t broken, but it does feel stuck. That’s why growth is our number one mission. We want to see thriving high streets and small businesses investing in their future, not held back by outdated rules or strangled by red tape.
‘Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth. We want to help small businesses expand to new premises and build an economy that works for, and rewards working people.’
Internet link: HM Treasury website
