Northern firms keep SBRR for 3 years from April 2026
“The period for which ratepayers retain Small Business Rates Relief after moving into a second property will be increased from 1 year to 3 years,” the Department has confirmed. For owner‑managers across the North who’ve been wary of a second site, that’s welcome breathing space. (gov.uk)
What’s changed is the ‘second property’ grace period in law. If you take on a new unit after 27 November 2025, you can keep Small Business Rate Relief (SBRR) on your main premises for up to three years, starting with bills issued from 1 April 2026. It’s aimed squarely at removing the cliff‑edge that put off many small retailers, makers and service firms from testing a second site. (gov.uk)
In plain terms: a Barnsley upholsterer taking a short lease on a satellite workshop, a Stockton‑on‑Tees baker opening a kiosk, or a micro‑manufacturer in West Yorkshire splitting production can keep the relief on their ‘original’ property while the new place beds in. The second site itself won’t usually qualify for SBRR; the support is designed to stick with the main premises.
Timing matters. If you expanded before 27 November 2025, the old 12‑month limit still applies. That subtle cut‑off will catch some firms who moved early, so it’s worth double‑checking your occupation dates and what’s shown on your council bill. The Department’s Budget‑day letter sets the line in the sand as 27 November 2025. (gov.uk)
This spring also brings wider rate changes that will shape Northern high streets. From April 2026 the national small business multiplier falls to 43.2p and the standard to 48.0p, with new retail, hospitality and leisure (RHL) multipliers at 38.2p and 43.0p, and a 50.8p high‑value multiplier for properties over £500,000 rateable value. Knowing which rate you’re on will sit alongside the extended SBRR grace in your cashflow planning. (gov.uk)
There’s a technical tweak for billing teams too. Demand notices must now track references to Part A1 of Schedule 7 to the Local Government Finance Act 1988, after Parliament re‑ordered the multiplier rules in 2023 and updated them again in 2025. Businesses won’t see the paragraph numbers, but councils and software providers have to keep the paperwork straight. (legislation.gov.uk)
All of this lands alongside a fresh revaluation from 1 April 2026. The Valuation Office Agency has published draft rateable values based on April 2024 market evidence, so Northern firms should look up their entry and sense‑check it against current rents. If your value has shifted, transitional and ‘supporting small business’ reliefs may cushion the jump. (gov.uk)
Councils are under strain and that may affect how quickly bills and relief decisions are processed. Bradford and Sheffield have flagged serious budget pressures, and Kirklees has warned about the risk of a Section 114 if savings fall short. None of this stops the new grace period, but it underlines the importance of getting paperwork in early. (room151.co.uk)
Business groups have pushed for exactly this sort of fix to the expansion ‘cliff‑edge’. The British Chambers of Commerce has long called for fewer sudden jumps around SBRR, arguing that steady rules give smaller firms the confidence to grow. (britishchambers.org.uk)
What to do now? Check when you took on (or will take on) a second unit; confirm whether your main premises still qualifies for SBRR under the three‑year grace; and review your 2026/27 multiplier and draft rateable value ahead of bills landing. If in doubt, ask your council’s business rates team to note your occupation dates on the account and flag the SBRR grace in writing. The combination of the new grace period and 2026 rates changes is designed to let Northern firms try a second site without losing their footing. (gov.uk)