Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the combined effect of higher rateable values and reduced business rates relief on the number of hospitality closures and empty units on high streets over the next three years.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.
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.
The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the reasons for the difference in the projected changes in liabilities for (a) pubs and (b) distribution warehouses over the three-year revaluation period after transition.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in, this falls to just 4%.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
The RHL multipliers are being funded through a higher rate for high-value properties (those with a RV of £500,000 and above). These high-value properties cover the majority of distribution warehouses, including those used by the online giants. Distribution warehouses will pay around £100 million more in business rates in 2026/27, with this going directly to lower bills for in-person retail, including pubs.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessments the Government has conducted on the potential effect of rateable value increases and changes to business rates relief, announced at Budget 2025, on a) vacancy rates on local high streets b) job losses c) businesses closures and d) price levels.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. The Valuation Office Agency has published statistics on changes in the rateable value of properties in the 2026 revaluation.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. 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. The 40% RHL relief was forecast to cost £1.7 billion in 2025/26, less than the £2.1 billion we are spending on Transitional Relief and Supporting Small Business relief in 2026/27. 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.
The new RHL tax rates will be 5p below the national tax rates.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it remains the Government’s policy to reform the business rates system to level the playing field between bricks and mortar businesses and large online businesses.
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 our manifesto.
The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
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.
The Government is paying for lower tax rates for RHL through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is her policy to use the business rates system to help support high street businesses in the context of their competition with online retailers.
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 our manifesto.
The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
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.
The Government is paying for lower tax rates for RHL through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance or analysis her department has undertaken on the potential impact on high street businesses of the removal of business rates relief and the simultaneous business rates revaluation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our 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.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of applying a) a 10p multiplier b) a 15p multiplier or c) the full 20p discount on high street and hospitality businesses; and if she will publish that assessment.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. 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.
The new RHL tax rates will be 5p below the national tax rates. Making the RHL tax rates even lower would have led to a higher tax rate for high-value properties.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her department has made of how many a) pubs b) hotels c) restaurants d) indoor leisure and e) night clubs are expected to see their business rates bill i) go up ii) stay the same or iii) decrease from April 2026 as a result of the measures announced in Budget 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties, including those in the hospitality and leisure sectors as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
For the pubs sector, the increase in rateable values will be 30%, which combined with the loss of the temporary RHL relief would lead to an increase in total bills paid by the sector of 45%. However, due to government intervention, the sector’s total bill will only increase by 4% next year.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our 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.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the RAC Report on Motoring 2025, published in October 2025, what assessment she has made of that report's recommendations on fuel duty.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26. The temporary 5p cut is scheduled to expire in March 2026. The Government considers representations from a wide variety of stakeholders, with decisions on rates made at fiscal events.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the RAC Report on Motoring 2025, published in October 2025, what assessment she has made of that report's recommendations on motor insurance tax.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
We have established a cross-government motor insurance taskforce with a strategic remit to set the direction for UK government policy, identifying short- and long-term actions for departments that may contribute to stabilising or reducing car insurance premiums. The taskforce's final report will be published in the autumn.
Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. There is no guarantee that any reductions in Insurance Premium Tax (IPT) would be passed on to policy holders.