News and insights from the Verallo team
Government signals review of business rates system
The UK government has announced it will review the business rates system in England, with the aim of making it more supportive of business growth and investment while strengthening local high streets.
The review will consider several key areas, including:
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Changes to the calculation of business rates, potentially moving from the current “slab” system to a “slice” system.
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Adjustments to Small Business Rates Relief (SBRR) to reduce sudden increases in bills that can discourage expansion.
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Enhancements to Improvement Relief (IR) to encourage property upgrades.
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Transitional measures ahead of the 2026 revaluation to limit large increases in rates bills.
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Updates to valuation methods and administrative processes, including the merger of the Valuation Office Agency (VOA) with HMRC.
The government has indicated that reforms will be implemented gradually and further details, including transitional relief and updated rates for retail, hospitality, and leisure sectors, will be published at the Autumn Budget 2025.
Verallo will continue to monitor these developments and provide guidance on their potential impact for businesses.