Small businesses could soon find it easier to expand and grow, following a government commitment to reform the business rates system.
On the 11th September 2025 HM Treasury has published an report setting out proposals to fix sudden jumps in business rates, known as “cliff edges”, which can deter small firms from investing in new premises. Currently, when a business opens a second property, it often loses access to Small Business Rates Relief (SBRR), creating a major barrier to growth.
Under the reforms, the government will review how SBRR can better support expansion, with the aim of boosting investment, job creation, and living standards.
Chancellor Rachel Reeves said: “Our economy isn’t broken, but it does feel stuck. That’s why growth is our number one mission. We want to see thriving high streets and small businesses investing in their future, not held back by outdated rules or strangled by red tape. Tax reforms such as tackling cliff edges in business rates and making reliefs fairer are vital to driving growth.”
As part of the wider reform agenda, the Chancellor has also pledged to cut red tape and reduce regulation to encourage business growth.
The government will consult further with business groups and stakeholders before announcing detailed reforms at the Budget on 26 November 2025.
Business groups have welcomed the move, saying the reforms will give small firms greater confidence to expand, invest, and create jobs.
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