Lord Booth-Smith

Without any Government intervention, Retail, Hospitality and Leisure relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to Retail, Hospitality and Leisure properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.

By tapering Retail, Hospitality and Leisure relief to 40%, rather than letting it end, the government has saved the average pub, with a rateable value (RV) of £16,800, over £3,300 in 2025.

At Budget, the Government also announced that from 2026-27, it intends to introduce permanently lower tax rates for high street RHL properties. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on the most valuable properties, which includes the majority of large distribution warehouses, including warehouses used by online giants.

The rates for any new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context.

Following the reversion of the First Time Buyer’s Relief nil-rate band and purchase price limit on 1 April 2025 by the previous Government, HMRC analysis estimates that there will be 4,000-6,000 fewer first-time buyer transactions per year between 2025/26-2029/30.

However, at Budget 2024, the higher rates of Stamp Duty Land Tax (SDLT) for additional dwellings were increased by two percentage points from 3% to 5%. This measure will ensure that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords, and companies purchasing residential property. The OBR certified costing estimates that increasing the higher rates of SDLT by two percentage points is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence.

The Government published an updated Charter for Budget Responsibility on 22 January 2025. The updated Charter sets out the government’s robust fiscal rules and a set of responsible reforms to the fiscal framework that improve certainty, transparency and accountability.

The government is required to pass the Charter through the House of Commons at least 28 days after the draft is laid before parliament. The final Charter was laid on the 22^nd of January 2025.