Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 47

47

Implement a phased business rates reset to prevent cliff-edges for local authorities.

Recommendation
Pending a fuller reform of the business rates system, business rates resets must avoid cliff-edges for local authorities by means of a phased reset, by which growth is reset to a fixed prior period, say seven years before the date of the reset. This would eliminate hard resets, allow authorities to benefit from accumulated growth for a known length of time, encourage investment, and reduce funding uncertainty. (Recommendation, Paragraph 171)
Government Response

A response document is linked to this report, dated 21 October 2025. Response attribution to this conclusion has not been verified. Read the response document ↗