Reviewing and reforming business rates
A briefing paper explaining local government finance reform in the late 2010s and early 2020s.
This briefing paper explains reforms to the system of business rates in England in the 2010s and 2020s.
Sections 1 and 2 explain the operation of the Business Rate Retention Scheme (BRRS). The BRRS plays a part in the distribution of funding between English local authorities. It was introduced in 2013 and will be subject to a ‘reset’ in 2026, as a result of the Labour government’s Fair Funding Review. Section 1 explains how the BRRS works, and section 2 outlines aborted policies to extend it under the May administration in the late 2010s.
Sections [3] and [4] set out changes since the mid-2010s to the effects of business rates on ratepayers, and the administration of valuation, collection of rates payments, and appeals. Section 3 describes the ‘fundamental review’ of business rates that took place under the Johnson administration in 2020-21, with some details of a previous review initiative between 2014 and 2016. Section 4 provides details of the 2024 Labour government’s ‘Transforming Business Rates’ programme. These two policies exhibit much continuity.
The policies covered in this note have effect in England only. Responsibility for business rates, and for local government generally, is devolved to Scotland, Wales and Northern Ireland. For a more general explanation of the business rates system in England, see the Library briefing paper Business rates. For more details on the 2026 revaluation of business rates in England, Wales and Scotland, see the Library briefing paper Business rates: the 2026 revaluation.