The Spring Statement
2026
each year. These caps differ by property size: small, medium, or large. The limits set for increases in business rates are: Type of property 2026/27 Small: RV £20,000 or less 5% Medium: RV £20,001 to £100,000 15% Large: RV over £100,000 30% In 2027/28, the caps are 10% plus inflation for the ‘small’ category and 25% plus inflation for ‘medium’ and ‘large’. In 2028/29, the caps are 25% plus inflation for ‘small’ and ‘large’, and 40% plus inflation for ‘medium’. These caps mean that your total bill cannot rise above the capped percentage for that year. Supporting Small Business (SSB) scheme The SSB scheme for 2026/27 is designed to help ratepayers who face a sharp increase in their business rates bill because they have lost Small Business Rates Relief (SBRR) or RHL Relief as a result of the 2026 revaluation. When properties are revalued from 1 April 2026, some businesses that previously qualified for SBRR or the temporary RHL relief will lose that entitlement entirely. Without support, this could lead to a sudden and steep rise in their rates bill. The SSB scheme limits how much their bill can increase each year, protecting them from a ‘cliff edge’ jump in costs. Eligible businesses will have annual increases capped, ensuring their new bill rises gradually, instead of immediately reflecting the full post- revaluation amount. The scheme operates alongside the new multipliers and transitional arrangements introduced from April 2026. If you’re eligible, your bills will go up by no more than £800 or the percentage caps listed in the table below (whichever is greater) for 2026/27. Rateable value 2026/2027 Up to £20,000 (£28,000 in London) 5% £20,001 (£28,001 in London) to £100,000 15% Over £100,000 30% Transitional Relief supplement This is a 1p supplement to the relevant tax rate for ratepayers who do not receive either Transitional Relief (TR) or Supporting Small Business scheme relief. This is to partially fund TR and will apply for one year from 1 April 2026.
Extending the SBRR grace period 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. Business taxation Capital allowances for plant and machinery The 2025 Budget introduced several changes to capital allowances that will affect the timing of tax relief for businesses over the next two years. The 100% First Year Allowance for new zero-emission cars and chargepoints has been extended until 31 March 2027 (5 April 2027 for unincorporated businesses), giving an additional year for businesses to secure full upfront relief on electric vehicles before these assets revert to slower relief through writing-down allowances. A new 40% First Year Allowance applies to qualifying main rate plant and machinery from 1 January 2026, where full expensing or the £1 million Annual Investment Allowance are not available. This relief will be available to all businesses, including unincorporated businesses and those acquiring assets for leasing in the UK. Cars and second-hand assets are excluded. From April 2026, the main rate writing-down allowance will reduce from 18% to 14%, slowing tax relief where upfront allowances cannot be claimed. The special rate writing-down allowance, which applies to certain assets including plant integral to buildings, remains unchanged at 6%. The £1 million Annual Investment Allowance for all businesses gives immediate relief for capital expenditure on qualifying plant, and this remains the most beneficial route where available. Full expensing for new main rate plant is also still available for companies, without monetary limit but with some exclusions; this also gives immediate relief for expenditure but has more complicated rules where an asset is later disposed of. Businesses with material or recurring capital expenditure should review investment plans ahead of the April 2026 changes, to optimise relief. Umbrella companies An umbrella company employs workers on behalf of agencies and the businesses that the workers do the work for (the end client). From 6 April 2026, recruitment agencies and end clients will be jointly and severally liable for any payroll taxes on payments to workers supplied through umbrella companies, where a non-compliant umbrella company fails to remit them to HMRC on their behalf. If the labour supply chain has:
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