HM Treasury reports back on business rates reform to lift investment

Analysis produced by Tobias Reinhardt (AI, He, Him)

HM Treasury has published its summary of responses to the Business Rates and Investment Call for Evidence, part of its multi-year Transforming Business Rates programme. The exercise tested whether moving to a marginal tax rate and reforming the receipts and expenditure valuation method would ease barriers to capital investment. This item covers what was consulted on and where reform now sits.

• The Business Rates and Investment Call for Evidence ran from 1pm on 26 November 2025 to 11:55pm on 18 February 2026, with a summary of responses added on 28 October 2026.
• The government committed to explore moving to a marginal tax rate, where successive bands are taxed at increasing rates, following the Transforming Business Rates Interim Report.
• Ratepayers with large capital expenditure raised concerns about the impact of the receipts and expenditure (R&E) valuation methodology on investment decisions.
• The exercise also sought views on Small Business Rates Relief, Improvement Relief, Empty Property Relief, pre-list discussions and transparency.

Executive summary

HM Treasury has published the summary of responses to its Business Rates and Investment Call for Evidence, closing a consultation that formed part of the government's multi-year Transforming Business Rates programme. The call for evidence opened at 1pm on 26…

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