Changes to the Small Business Rates Relief (SBRR) could arrive in the future with Chancellor Rachel Reeves reviewing the current regulations to ensure small businesses can expand their services and grow.
A recently released report from HM Treasury has confirmed the Chancellor is keen to help small businesses and get the economy moving.
The report confirms she is reviewing the SBRR and ways to tackle tax increases on businesses looking to expand, known as “cliff edges”.
The Chancellor’s long-term plans remain unclear but given she has reaffirmed her commitment to small businesses, it’s the ideal time for you to analyse your business’s finances and discuss your future plans.
What are the current Small Business Rates Relief regulations?
Under current SBRR rules, small business owners lose all access to the relief if they open a second commercial property for their business.
Given how the rules work, this is putting off some business owners from investing further because of the tax implications and increase in “cliff edges”.
The Government wants to kickstart the economy and the Chancellor has put small businesses at the forefront of her thinking.
She wants the SBBR and business rates to be incentivising business owners to invest rather than putting them off.
Has the Chancellor said anything about the report?
Following the report’s release, Chancellor Rachel Reeves discussed her thoughts and reasoning: “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 We want to see thriving high streets and small businesses investing in their future, not held back by outdated rules or strangled by red tape.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 building an economy that works for, and rewards working people.”
Permanently lower tax rates for retail, hospitality and leisure properties will come into effect from April 2026 after the Chancellor confirmed this during the 2024 Autumn Budget. This will also apply to shops, pubs and restaurants.
Is the review of the SBRR a good sign for business owners?
The Government is clearly committed to helping small businesses and encouraging them to invest.
They have already given 250,000 retail, hospitality and leisure businesses 40 per cent off their business rates.
In addition to this, the Government has frozen the small business multiplier to protect against inflation.
With the Chancellor also reviewing SBRR regulations, it’s a good sign for small business owners who are likely to see changes that will incentivise them to expand their business and realise their own growth plans.
She wants to drive growth and ultimately wants small business owners to play a major role in boosting the economy.
You may finally take your business to the next level in the months to come. Ahead of potential changes to the current regulations and the upcoming Autumn Budget, this is a great time to understand your business’s finances
Finance experts are on standby to help you do this. They can help you analyse revenue and expenditure, spot potential growth opportunities, help you build a picture of your business’s finances and be in a position where you are ready to accelerate your growth plans.
Looking to assess your business’s finances? Contact our team today.