Policy paper

Resetting the business rates retention system from 2026 to 2027

Publication outlining the delivery of the reset of the business rates retention system as part of the Fair Funding Review 2.0.

• From: Ministry of Housing, Communities and Local Government
• Published: 20 November 2025

Applies to England

Documents

Resetting the business rates retention system from 2026 to 2027

HTML

2025-26 Business Rates Retention Income calculator

MS Excel Spreadsheet, 327 KB

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Details

This document sets out how the government plans to deliver a reset of the business rates retention system from 1 April 2026 as a core part of the government’s Fair Funding Review 2.0 to better align local government funding with need.

This publication covers, in detail, the key considerations related to the delivery of the business rates reset ahead of the 2026 to 2027 local government finance settlement. The contents of the document are intended to assist local government in understanding of how the reset will be delivered, and should help local authorities to incorporate the impacts of the reset into their future financial planning.

This calculator helps local authorities to understand how an estimate of their 2025/26 business rates income has been calculated for the purposes of Fair Funding Review 2.0 transition policy.

Published 20 November 2025