Oral Answers to Questions

Debate between Abtisam Mohamed and Gareth Thomas

Thursday 31st October 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

Revitalising our high streets is a priority for this Government, and I and the Secretary of State have spoken to colleagues across Whitehall to ensure that we are working together to create better conditions over the long term for high street businesses to thrive. That means addressing antisocial behaviour and crime, rolling out banking hubs, stamping out late payments, empowering communities to make the most of vacant properties, strengthening the post office network, reforming the apprenticeship levy and, as the Chancellor confirmed yesterday, reforming business rates.

[Abtisam Mohamed]

There are just short of 5,500 businesses in Sheffield Central, and more than 80% of them are micro-businesses employing fewer than 10 employees. These are the engines of local economic growth in our area, and they provide vital services in our community. Many businesses in my constituency welcome yesterday’s announcement of permanently lower business rates for hospitality, retail and leisure properties from 2026-27. Will the Minister outline what further steps he is taking with the Chancellor to create a fairer business rates system, so we can ensure that our high streets thrive permanently?

[Gareth Thomas]

I am grateful to my hon. Friend for her question, and I think this is the first time I have had the chance to congratulate her on her election to this House. She is absolutely right that if we are to see our high streets thrive, we need to ensure there is a genuinely level playing field for businesses online and those on the high street. As the Chancellor announced yesterday, to deliver that pledge we intend to introduce permanently lower tax rates for retail, hospitality and leisure properties from 2026-27. To fund that, we intend to introduce a large business multiplier from 2026-27, which will apply a higher rate on the most valuable properties. That will capture the majority of large distribution warehouses, including those used by the online giants. However, we want to go further, so the Chancellor published a discussion paper yesterday asking businesses for further ideas on the reform of business rates.