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

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the letter entitled 5/2025: Confirmation of Budget package and the Non-Domestic Rating Multipliers for 2026/2027, of 26 November 2025, whether the calculation of the amount and capping of transitional relief is based on the previous business rates bill which includes the value of the previous Retail, Hospitality and Leisure relief in 2025-26.

The 2026 Supporting Small Business Relief Scheme provides support for ratepayers losing certain reliefs including the current 40% relief for Retail, Hospitality and Leisure. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

The Supporting Small Businesses Relief is calculated from a base liability that takes into account the effect of eligible reliefs – Small Business Rate Relief, Rural Rate Relief, 2025/26 Retail, Hospitality and Leisure Relief, or 2023 Supporting Small Business Relief. The government published guidance for local authorities on the administration of the scheme on 15 December. This can be found on gov.uk here.