Business Rates: Retail, Hospitality and Leisure

Gavin Williamson Excerpts

Monday 19th January 2026 Commons Chamber

[Dan Tomlinson]

At the Budget, we published further updates on our broader work to transform the business rates system. There are things that we want to look at—for example, a switch from a slab system to a slice system, which should support and encourage investment. As was confirmed by the Chancellor at the Budget, we have already extended small business rate relief, so that businesses do not face a disincentive to expand from one premises to two premises, but there are more things that we want to look at that are in that consultation. Of course, we will continue to engage with businesses on our high streets up and down the country, and with businesses large and small, to see what more we can do to continue our work of reforming and improving the business rates system.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Some of my publicans are facing a threefold increase in rates. They have seen the speculation that the Treasury has briefed out to the newspapers, but they are still waiting. They do not have long to wait before they have to pay these increased bills, though, so can the Minister give some indication of when there will be clarity—not just for publicans, but for retailers?

[Dan Tomlinson]

It is important to be clear that no pub will see their business rates bill go up by three times this year. [Interruption.] No, it is simply not the case. It is true that some businesses have seen significant increases in their valuations, but this year the Government are capping the increase in business rates bills at either £800 or 5%, 15% or 30%, depending on the size of the property. Yes, bills may be higher, and it could be by a large percentage if the rate is moving up by £800, but for the vast majority of businesses, the increase in their bills this year will be limited, due to the Government having intervened and provided more than £2 billion of support this year.