The government has released a call for evidence seeking opinions on reforming business rates and investment. The aim is to explore how moving to a marginal tax rate, where successive bands are taxed at increasing rates, may be beneficial for investment.
The call for evidence focuses on how the reform of business rates can be used to incentivise and secure more investment by UK businesses.
A Discussion paper published in the Autumn Budget 2024 laid out the government's intention to reform the business rates system. The aim is to:
- Incentivise investment and growth.
- Support the high street with a fairer system.
- Make the system fit for the 21st century.
Following this, the government published an Interim Report which set out the plans for the government to meet their objectives for delivering a fairer, modernised business rates system which supports investment.
Areas that have been determined as priority areas for potential reform are:
- 'Slab' to 'slice' reform: moving from the current structure (where a single multiplier is paid on the Rateable Value (RV)) to a new structure based on a marginal rate, similar to Income Tax, to reduce investment disincentives.
- Small Business Rates Relief (SBRR): increase the RV threshold and remove the 'single property' condition to allow small businesses to expand.
- Improvement Relief, once more data is available to establish how the relief is currently being used.
- Exploring concerns raised over the receipts and expenditure methodology.
- Possible shortening of the Antecedent Valuation Date (ADV).
- Using the merger of the Valuation Office Agency with HMRC to pursue administrative changes that will help rate payers.
The call for evidence, which closes on 18 February 2026, seeks opinions on how the reforms above could be taken forward.
Useful guides on this topic
Autumn Budget 2025: At a glance
The Chancellor, Rachel Reeves, presented her Autumn Budget on 26 November 2025. This is our 'At a glance' summary of the key tax announcements and measures
Land & Property: An adviser's tax update 2025-26
Land and Property taxes: a comprehensive review of the sector offering a topical CPD update. Hot topics for advisers include issues concerning the abolition of the Furnished Holiday Let (FHL) regime and the recent Spring Statement 2025 announcement that MTD for landlords with income above £20,000 will be brought forward to April 2028.
External link
HM Treasury: Business Rates & Investment: Call for evidence