Local authority funding reform – Resetting the business rates retention system

Summary of responses and government response to the technical consultation on Resetting the business rates retention system from 2026 to 2027

This document summarises the responses and gives the government’s reply to the technical consultation the government ran covering the proposed approach to delivering a reset of the business rate retention system for 2026-27, to update government’s assessment of how much business rates are available through updating Business Rates Baselines (BRBs). It includes further detail on the final policy proposals and methodology for constructing BRBs. This methodology will be introduced at the provisional Local Government Finance Settlement later this year.