Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference paragraph 4.28 of the Autumn Budget 2025, HC1492, published on 26 November 2025, how many hereditaments will pay the business rate transitional supplement in 2026-27; what estimate she has made of the cost of the supplement; and for what reason the transitional relief is no longer funded by the Exchequer.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the 2026 business rates revaluation is revenue neutral (i) in the first year, or (ii) over the valuation cycle.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether transitional relief will apply to the application of the high-value business rate multiplier in 2026-27.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to increase Small Business Rate Relief thresholds to prevent closures of pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.
If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to increase Small Business Rate Relief thresholds to prevent closures of pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.
If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to reduce business rates multipliers for pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.
If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the valuation of the high value council tax surcharge will be undertaken through the use of the Valuation Office Agency’s Automated Valuation Model; and what is the frequency by which the valuations will be revalued.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency are developing their approach to the targeted revaluation and will set out more details in due course, following the outcome of the Government's consultation.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for his policies of parcels from Northern Ireland being incorrectly flagged for EU customs checks due to UK-wide system defaults.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government introduced important new arrangements for the movement of parcels moving to and from Northern Ireland, ensuring that goods can continue to move smoothly between Great Britain and Northern Ireland.
HMRC does not carry out routine customs checks on parcels moving into Northern Ireland from Great Britain, save those that are conducted on a risk and intelligence led basis to tackle fraud and criminality.
HMRC has published clear guidance to support parcel operators and continues to engage with the express sector regularly to ensure businesses and consumers in Northern Ireland benefit from these arrangements.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of recent trends in levels of illegal agriculture red diesel use.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Rebated fuels must be supplied by Registered Dealers in Controlled Oil who are approved by HMRC to ensure that fuel is only obtained by those entitled to use it.
Rebated fuels can only be used in eligible vehicles and machines when they are being used for a qualifying purpose, which includes agricultural activities.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Budget 2025: Strong Foundations, Secure Future, page 47, what is the breakdown of the £2.8billion efficiencies and savings target for 2028-29 across each department.
Answered by James Murray - Chief Secretary to the Treasury
The £2.8 billion efficiencies and savings represent 0.5% of departmental day-to-day budgets set at Spending Review 2025.
Efficiencies and savings achieved within the NHS will be reinvested to improve patient care, and the government will ensure it continues to meet existing NATO spending commitments.