Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, how does the uplift in Rateable Values in the 2026 business rates revaluation affect the calculation of council funding in the Local Government Finance Settlement for 2026-27; and what estimate his Department has made of the potential impact of council areas with an above-average increase in Rateable Values on their net funding relative to the previous year from business rate revenue.

At revaluations, adjustments through the business rates retention system ensure that as far as possible local authorities do not see a change in the income they raise from business rates.

In 2026-27, the business rates retention system is being reset as part of the design of the multi-year settlement which will also deliver the Fair Funding Review reforms. The reset includes a new measurement of all local authorities’ income which takes into account the impact of the 2026 revaluation, and reallocates business rates funding according to an updated measurement of local government funding need.