Business rates reductions

For free information or advice contact the team on 0121 704 8173 or use our enquiry form.

Contact us about business rates

Transitional relief

Transitional relief limits how much your bill will go up as a result of the revaluation. This means if your business is eligible for transitional relief, the increases to the business rates bill will be phased in gradually.

The below table shows the percentage increases applied to phase in your bill over the next three years:

2026 supporting small businesses relief (SSBR)

The government is providing funding to local authorities. This is so they can provide relief to those ratepayers facing large increases in business rates charge due to the revaluation (effective from 1 April 2026) resulting in the loss of:

• small business rates relief
• rural rate relief 
• retail, hospital and leisure relief 
• 2023 supporting small business relief 

This relief is in addition to the transitional relief arrangements due to be introduced on 1 April 2026.

Entitlement to SSB relief is automatically calculated and granted to eligible ratepayers.

Bill increases will be capped at the higher of £800 or the relevant transitional relief caps from 1 April 2026. 

For more information, please refer to supporting small business relief. 

Extending the small business rates relief (SBRR) grace period

As of 27 November 2025, businesses will now keep their SBRR on their first property for three years after they take on a second property instead of just one year.

Empty properties

Empty properties are exempt from business rates for the first three months they are empty. Industrial and warehouse properties qualify for a further three months exemption. After this period full business rates are payable unless:

• the property has a rateable value (RV) less than £2,900 (2026 Rating List)
• the property is a listed building
• the ratepayer is bankrupt or in liquidation
• the ratepayer is a company in administration
• ratepayer is entitled to occupy as an executor of a deceased person
• the ratepayer is prohibited by law to occupy the property

Charities can also get extended empty property relief providing that the next use of that property is for that charity, or a charity with the same aims and objectives. The same applies for amateur sports clubs.

Improvement relief

Improvement relief:

• supports businesses who have invested in their property
• provides relief from higher business rates bills, where the increase in your bill was due to making certain improvements to your property
• lasts for 12 months from when the improvement works were completed

To be eligible for improvement relief, you must:

• have qualifying improvement works, and
• meet the occupation condition

You do not need to apply for improvement relief or do anything differently. If you meet the requirements, we will apply the relief to your bills.

For more information, please go to GOV.UK.

Partly occupied property relief

A ratepayer is liable for full business rates whether a property is wholly occupied or only partly occupied. However, where a property is partly occupied for a short time we have discretion in certain cases to award relief in respect of the unoccupied part.

To apply you will need to supply us with:

• a letter explaining the changes, including the date of when your property became or will become partly occupied
• a floor plan that identifies the unoccupied area

Hardship relief

We may be able to provide hardship relief if you are experiencing hardship and your business is of importance to the local community.