Chancellor Rachel Reeves has signalled a fresh push to support small businesses by reforming business rates, pledging to remove the “cliff edges” that discourage firms from expanding.

At present, companies lose all access to small business rates relief when opening a second property, a rule widely criticised for stifling growth and investment.

Speaking today, Reeves said the government’s top priority was delivering growth and that small businesses were central to that ambition. “Our economy isn’t broken, but it does feel stuck,” she noted. “We want to see thriving high streets and small businesses investing in their future, not held back by outdated rules or strangled by red tape.”

Reeves confirmed that the Treasury is reviewing the current system, with a focus on making reliefs fairer and encouraging firms to expand, employ more people and reinvest profits locally. The reforms form part of Labour’s broader commitment to revitalising Britain’s high streets and ensuring that economic growth “works for, and rewards, working people”.

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Rachel Reeves says economy is not broken, it’s just stuck