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

To ask the Secretary of State for Housing, Communities and Local Government, through what mechanism small business rate relief is financed; and how local authorities are reimbursed for the cost.

The cost to local authorities of providing small business rate relief was taken into account when setting up the business rates retention system. The Government has also compensated local authorities through additional grants to reflect changes to the small business rates relief scheme since 2013.