Government issues guidance for retail business rates relief for 2025/26

At the Autumn Budget on 30 October last year, Chancellor Rachel Reeves extended the business rates relief scheme for retail, hospitality and leisure properties, a move worth over £1.5 billion in 2025/26.

The government has now published guidance setting out the eligibility criteria for the scheme. The relief scheme guidance provides local authorities with information about the intended operation and delivery of the policy. The government expects local authorities to include details of the relief to be provided to eligible ratepayers for 2025/26 in their bills for the 2025/26 billing cycle.

The 2025/26 Retail, Hospitality and Leisure Business Rates Relief scheme will provide eligible occupied retail, hospitality and leisure properties with a 40% relief. The total value of relief available per business, whether occupying one or more properties, is capped at £110,000.

Any ratepayer who would be eligible for a sum of relief above £110,000 if there were no cap in place, should be awarded relief up to the full value of £110,000 (as has been the policy in previous years).

For the full guidance, click here.