Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress she has made on reforming the business rates system.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street.
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will provide permanent support to the sector.
When the new multipliers are set at Budget 2025, HM Treasury intends to publish overall analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
At Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform, including SBRR.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
The Government has engaged extensively with stakeholders, both face-to-face at roundtables and through written representations.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to hold discussions with (a) the Mayor of London and (b) local authorities in London on the potential impact of changes to business rates on (i) small and (ii) independent retailers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street.
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will provide permanent support to the sector.
When the new multipliers are set at Budget 2025, HM Treasury intends to publish overall analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
At Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform, including SBRR.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
The Government has engaged extensively with stakeholders, both face-to-face at roundtables and through written representations.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes to business rates on the long-term viability of high streets in Chelsea and Fulham constituency.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street.
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will provide permanent support to the sector.
When the new multipliers are set at Budget 2025, HM Treasury intends to publish overall analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
At Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform, including SBRR.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
The Government has engaged extensively with stakeholders, both face-to-face at roundtables and through written representations.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to introduce additional support measures for small businesses affected by increases in business rates in London boroughs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street.
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will provide permanent support to the sector.
When the new multipliers are set at Budget 2025, HM Treasury intends to publish overall analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
At Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform, including SBRR.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
The Government has engaged extensively with stakeholders, both face-to-face at roundtables and through written representations.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support small businesses in (a) high-rent areas and (b) Chelsea and Fulham constituency, in the context of recent changes to business rates.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street.
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will provide permanent support to the sector.
When the new multipliers are set at Budget 2025, HM Treasury intends to publish overall analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
At Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform, including SBRR.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
The Government has engaged extensively with stakeholders, both face-to-face at roundtables and through written representations.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of changes to business rates on small independent businesses in Chelsea and Fulham constituency.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street.
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27, which will provide permanent support to the sector.
When the new multipliers are set at Budget 2025, HM Treasury intends to publish overall analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
Currently, Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000, which an additional c.60,000 businesses benefit from.
At Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform, including SBRR.
The Government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.
The Government has engaged extensively with stakeholders, both face-to-face at roundtables and through written representations.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact on small and medium-sized wine traders of the introduction of a tax-by-strength alcohol excise duty regime within one year.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
Whilst the new system of wine labelling allows product labelling to 0.1 per cent ABV, this is optional, and wine can still be labelled to the nearest 0.5 per cent ABV.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will make an estimate of the administrative cost to wine sellers of the an alcohol excise duty regime based on taxing wine by strength.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
Whilst the new system of wine labelling allows product labelling to 0.1 per cent ABV, this is optional, and wine can still be labelled to the nearest 0.5 per cent ABV.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of a separate duty charge for wine for each 0.1% of ABV.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
Whilst the new system of wine labelling allows product labelling to 0.1 per cent ABV, this is optional, and wine can still be labelled to the nearest 0.5 per cent ABV.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will commission research into the potential impact of the (a) property price limit and (b) exit penalty on first-time buyers who wish to use Lifetime ISAs to buy a property.
Answered by Tulip Siddiq
Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. HMRC is currently undertaking social research on the LISA with existing account holders and those who are eligible but have not opened a LISA.
HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.
The Government keeps all aspects of savings tax policy under review.