Rate reliefs

At the 2025 Autumn Budget the Chancellor announced that the 2026 SSBR scheme will cap bill increases at £800 per year or the relevant caps within transitional relief (whichever is the greatest) for any business losing eligibility for certain reliefs, including Small Business Rate Relief and Rural Rate Relief, at the 2026 revaluation.

2026 SSBR will help those ratepayers who at the revaluation are seeing large increases in their bills as a result of losing some or all of their:

• Small Business Rate Relief or Rural Rate Relief,
• 40% Retail Hospitality and Leisure Relief, and/or
• 2023 Supporting Small Business Relief.

For those ratepayers receiving 2023 SSB relief on 31st March 2026 (including those also receiving SBRR, Rural Rate Relief and/or RHL Relief on 31st March 2026), any eligibility for 2026 SSBR will end on 31st March 2027.

All other eligible ratepayers remain in 2026 SSBR for either 3 years or until they reach the bill they would have paid without the scheme. A change of ratepayers will not affect eligibility for the Supporting Small Business scheme but eligibility will be lost if the property falls vacant or becomes occupied by a charity or Community Amateur Sports Club.

There is no second property test for eligibility for the 2026 SSBR scheme.

However, those ratepayers who during 2025/26 lost entitlement to Small Business Rate Relief (because they failed the second property test) but have, under the rules for Small Business Rate Relief, been given a 12 month period of grace before their relief ended (or from 27th November 2025 for 3 years) - can continue on the 2026 SSBR scheme for the remainder of their period of grace.

As with other reliefs, the amount of SSBR awarded should be recalculated in the event of a change of circumstances. This could include, for example, a backdated change to the rateable value or to the hereditament. This change of circumstances could arise during the year in question or during a later year.

Subsidy Control

The 2026 SSBR is likely to amount to a subsidy.

Therefore, any relief provided by local authorities under this scheme will need to comply with the UK’s domestic and international subsidy control obligations (See the DBT guidance for public authorities (https://www.gov.uk/government/publications/complying-with-the-uks-internationalobligations-on-subsidy-control-guidance-for-public-authorities/technical-guidanceon-the-uks-international-subsidy-control-commitments#section-1) which contains guidance and information for the new UK subsidy control regime.

To the extent that a local authority is seeking to provide relief that falls below the Minimal Financial Assistance (MFA) thresholds, the Subsidy Control Act allows an economic actor (e.g. a holding company and its subsidiaries) to receive up to £315,000 in a three-year period (consisting of the 2026/27 year and the two previous financial years).

MFA subsidies cumulate with each other and with other subsidies that fall within the category of ‘Minimal or SPEI financial assistance’. Any other subsidies claimed under the Small Amounts of Financial Assistance limit of the Trade and Cooperation Agreement should be counted under the £315,000 allowance.

In those cases where it is clear to the local authority that the ratepayer is likely to breach the MFA limit then the authority should automatically withhold the relief. Otherwise, local authorities may include the relief in bills and ask the ratepayers, on a self-assessment basis, to inform the authority if they are in breach of the MFA limit.

MFA subsidies above £100,000 are subject to transparency requirements.

This is not cumulated per beneficiary but applies per subsidy award. This means that for every individual subsidy provided of more than £100,000, the local authority needs to include details of the subsidy on the subsidy control database.

Local authorities will need to create an account to use the Manage UK Subsidies Portal (https://manageuksubsidies.beis.gov.uk/). This will enable users to upload subsidy schemes and awards. To gain access, users must email subsidydatabase@beis.gov.uk.