Business Rates

Debate between Lindsay Hoyle and Dan Tomlinson

Tuesday 27th January 2026 Commons Chamber

[Dan Tomlinson]

Let me apologise profusely for not letting you know in advance, Madam Deputy Speaker. This is the first time I have done one of these statements, and I will not make the same mistake again. I am glad that the same courtesy will be afforded to the shadow Chancellor, and I look forward to hearing a full 15 minutes of remarks from him. I am sure that they will be entertaining for us all. [Interruption.] I will make progress now, and we will hear more from the shadow Chancellor.

This decision will mean that the amount of business rates paid by the pub sector as a whole will be lower in 2028-29 than it is today. This is Independent Venue Week, so it is particularly appropriate that our package will apply also to music venues. Many live music venues are valued as pubs, and many pubs are grassroots live music venues. It would not be right to seek to draw the line in a way that includes some and not others, and I thank MPs who have made constructive representations on this issue in recent weeks. In the meantime, we are pressing ahead with wider regulatory reforms, building on the new licensing policy framework in the Budget, and we are working with the sector to ensure that local authorities are using that to ease licensing decisions on the ground. As part of our ongoing licensing reforms, for home nation games in the later stages of the men’s football world cup this summer, pubs and other licensed venues will be able to open until 1 am or 2 am, depending on when the game starts. We will legislate to increase the number of temporary events notices for pubs and other hospitality venues, whether to help them screen world cup games, or for other community and cultural events.

This Government are committed to helping pubs build sustainable business models over the long term. In the spring we will consult on further loosening planning rules to benefit pubs, helping them to add new guest rooms or expand their main room without planning applications. We will also continue to engage with the sector to ensure that other retail leisure and hospitality premises have planning flexibility—

[Mr Speaker]

Order. This is not acceptable. I have to be quite honest, because the other Front Benchers need time to respond. When a statement is meant to take 10 minutes, that is meant to be 10 minutes. If Ministers tell me otherwise in advance, I am willing to work with them, but they cannot just carry on speaking. Minister, I take it that you are now coming to the last page of the statement, not the middle pages—[Interruption.] No, I want you to bring it to an end, and quickly.

[Dan Tomlinson]

May I apologise, Mr Speaker, for not letting you know in advance that the statement would be running over 10 minutes?

[Mr Speaker]

Can I just ask, gently, have you not been advised that this is meant to be 10 minutes? Departments have people who are meant to advise Ministers on how long they have got. How on earth have you got a speech that is longer? It could be 20 minutes. It is unfair to the Members present, and there is other business. Please, this House should be shown the respect it deserves, and unfortunately we are not getting it. I am here to protect Members, not allow Ministers to take advantage.

[Dan Tomlinson]

Mr Speaker, I will wrap up very quickly, and I apologise again.

This Government also understand that things are not easy out there. Today’s announcement is about additional support for pubs, but we understand that this is a tough time for other businesses on the high street. We have already taken significant steps to acknowledge that and support businesses, including £4.3 billion of business rates support in the Budget. Over the past decade, consumers have changed their habits and are increasingly working from home and shopping online, and these trends continue to make it harder for high street businesses. I am therefore announcing today that later this year the Government will bring forward a high streets strategy to reinvigorate our communities. We will work with businesses and representative bodies to bring that strategy together. It will be a cross-Government strategy, and we will be looking at what more the Government can do to support our high streets.

To conclude, this Government have already started the work of reforming our business rates system, and any potential changes to business rates will be considered at the Budget in the usual way. Labour Members have the right economic plan for Britain and will back our high streets and our pubs every step of the way.

[Mr Speaker]

I call the shadow Chancellor of the Exchequer.

--- Later in debate ---

[Sir Mel Stride]

That is much appreciated, Mr Speaker.

Mr Speaker, was that it? After all this time, and weeks of telling our local pubs that help was on the way, this is all they get—a temporary sticking plaster that will only delay the pain for a few, while thousands of businesses despair as their bills skyrocket. The Labour party manifesto promised to completely replace the business rates system. Labour Members said that they would create a system that levels the playing field for our high streets and supports entrepreneurship and investment. Well, we are waiting.

So far, what we have seen is the exact opposite of what our local businesses were promised, with business rates soaring across the board. Despite the temporary relief announced today, pubs will still end up, in time, with bills more than 70% higher than they are today. The Federation of Small Businesses has calculated that the business rates of a typical medium-sized shop or restaurant with a rateable value of around £50,000 will increase by 71% over the coming years. For hotels, it will be over 100%.

Ministers expect those businesses to be grateful for some temporary relief, tweaks to multipliers and changes to licensing, but the Conservatives have been clear: support must be permanent. We have to cut business rates for our high streets to give certainty to local businesses. Measures must be far wider than those that the Government have announced today, applying not just to pubs but to the whole of the retail, hospitality and leisure sectors, which bring life to our high streets and town centres. We would not just introduce temporary reductions in rates, but completely abolish business rates for thousands of pubs, shops and restaurants across our country.

These huge tax rises introduced by this Government are a choice, but it does not have to be this way. The Government have chosen to increase spending by vast amounts, including on the benefits bill, with a benefits giveaway of over £3 billion at the Budget to abolish the two-child cap. These choices are why bills are going up, businesses are going under, jobs are being lost and our high streets are being hollowed out.

Let us not forget that this is not an isolated issue. Businesses are having to shoulder not just business rates rises, but a long list of other burdens that are being piled on by a Government who simply do not understand how businesses work. Many of those facing the highest increases in their business rates were among the worst impacted by the Chancellor’s jobs tax. They have already seen their business rates go up by as much as 140% last year, and they face yet more costs and red tape from the Government’s employment rights legislation. Analysis by UKHospitality suggests that, on average, as many as six hospitality venues could close every single day this year. That is a tragedy for our high streets and our communities. It is also a tragedy for our young people, many of whom look for their first job in the local pub or coffee shop, and who will find those jobs simply do not exist any more.

I ask the Minister, where is the help for the wider retail, hospitality and leisure sectors? Does what has been announced today include gastropubs, pubs with hotel rooms, bars, nightclubs and private clubs? Why are the Government happy to stand by and watch while businesses close and jobs are lost? When will the guidance be published for businesses, so that they know whether they will be eligible for this further relief and what their bills will be over the coming year? Why did Ministers not come forward with this relief for pubs at the time of the Budget, when they knew the level of increases that many businesses were facing? No new information has been provided between the Budget being announced and this statement. Can the Minister confirm that because this relief was not accounted for at the Budget, today’s announcements will need to be paid for through yet more borrowing?

The Government have proved today that either they do not understand the damage that they are doing or they do not care. Today’s announcement is far too little, far too late.

[Dan Tomlinson]

Apologies again, Mr Speaker; it will not happen again.

[Mr Speaker]

I appreciate that, but when Madam Deputy Speaker is in the Chair, I expect her to be given the same respect, so that when she says that time is up, you do accept that ruling. She felt that you were not stopping in time. I do not want to get into it now, but I will be speaking to the Chief Whip later.

[Dan Tomlinson]

It is just not credible for the shadow Chancellor to say that he would scrap business rates. What did the Conservatives do over the 14 years that they were in power? They kept business rates in place, they did not reform the system and, year after year, they introduced temporary reliefs that did not work or last. Some 7,000 pubs closed under their watch, in communities up and down the country, and they expect this House to believe that they were just getting around to it. Well, we do not believe that and we will not stand for it. Instead, this Labour Government will get on with the work of ensuring that we can get our public finances in order, getting borrowing down and continuing to support businesses, as far as we reasonably can, with our £4.3 billion of support.

The right hon. Gentleman asked about the guidance. That guidance will be published today—I hope it has been published already, but if not it will come very soon. Bills will be landing in the inboxes and on the doormats of businesses across the country in the coming weeks, and will reflect the changes that have been announced today. Yes, this will be scored in the usual way at the Budget. He talks about borrowing, but his plans to scrap business rates entirely, funded by made-up savings in other parts of public spending, would mean an increase in borrowing of £30 billion or so, which we could not afford.

The Labour Government have set out significant plans today to support pubs and those businesses that are the heart of our high streets that have been affected by the particular way that they are valued. As I said in my statement, pub business rates valuations are not the same as those for the rest of hospitality: pubs are valued on their takings, whereas other hospitality businesses are valued on their bricks and mortar. Industry bodies have highlighted concerns about how the costs are accounted for in this methodology. The Government want to look at that more closely, which is why we are launching the review and have come forward with this significant package of support for pubs today.

[Mr Speaker]

I call the Chair of the Treasury Committee.

--- Later in debate ---

[Dan Tomlinson]

I thank my hon. Friend for her engagement on behalf of the businesses in her constituency. She raises some interesting issues on tax, regulation and licensing when it comes to pubs and hospitality. I do not want to pre-empt the work of the high street strategy, which will be a cross-Government effort with the Home Office, the Department for Business and Trade, the Ministry for Housing, Communities and Local Government and the Treasury working together, but we want to hear about these things from businesses on the ground. I look forward to engaging with Members of Parliament from all parties as we work on the strategy in the coming months.

[Mr Speaker]

I call Jennie’s dad, Steve Darling.

Oral Answers to Questions

Debate between Lindsay Hoyle and Dan Tomlinson

Tuesday 27th January 2026 Commons Chamber

[Mr Speaker]

I think the Minister has got the idea.

[Dan Tomlinson]

I have got the idea, Mr Speaker!

The key thing to note here is that there is a significant difference between the change in the rateable value and the change in the business rates. This year, we have stepped in to cap the increases for bills at £800 for those coming into the system for the first time. For most high street businesses, the increase will be 15%, while the very largest will see increases of 30%. Those are the steps we have taken. When the Liberal Democrats were in government, they chose to increase VAT on businesses up and down the country.

[Dan Tomlinson]

I am very fond of my constituency neighbour, who has the privilege of sharing a part of Barnet with me. There will be news this afternoon—I am just trying to find my words, Mr Speaker.

[Mr Speaker]

Everybody’s looking for something! [Laughter.]

[Dan Tomlinson]

I hope the microphone picked that up.

We will make further announcements this afternoon specifically focused on pubs, but I understand that there are businesses across the economy that will have seen increases in their rateable values since the pandemic. That is precisely why we have stepped in with our support package.

--- Later in debate ---

[James Wild (North West Norfolk) (Con)]

The Chancellor promised hospitality firms that she would lower their taxes, but her business rate raid is hammering every town, village, city and high street. This is not just an attack on pubs; hotels, cafés, music venues and many more are being hit. It is two months since the Budget caused huge worry for these businesses, and we await details of this latest U-turn, but the key question is: does the Chancellor get it? Does she get that it is not just pubs but hospitality, leisure and retail businesses that need support because of her terrible choices?

[Dan Tomlinson]

Conservative Members do not get it, because when they were in government, they set out plans to remove the temporary pandemic rates relief overnight in 2025. That would have seen an increase of 300% in business rate bills overnight for businesses on the high street. We have taken a different, fairer and more proportional approach, phasing out the pandemic relief over a slower time period and extending it into this year.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

Business Rates: Retail, Hospitality and Leisure

Debate between Lindsay Hoyle and Dan Tomlinson

Monday 19th January 2026 Commons Chamber

[Dan Tomlinson]

The shadow Chancellor said that I was dragged to the House, but that is very much not the case; I am very happy to take questions from him and from Conservative and Government Members.

[Mr Speaker]

May I help the Minister a little bit? I did grant this urgent question. This discussion would not have happened if I had not done so. I am not quite sure that his statement and mine are compatible.

[Dan Tomlinson]

I fully respect your decision to grant an urgent question, Mr Speaker. It was—[Interruption.]

[Mr Speaker]

Order. I certainly do not need any help from Opposition Members.

[Dan Tomlinson]

It was the word “dragged” that I had some objection to. I did not mean to comment on your decision to grant the urgent question, Mr Speaker.

Let me answer some of the questions asked by the shadow Chancellor. The key thing is that we are implementing the revaluations that his Government set in train. Treasury Ministers holding a similar role to mine a good few years ago undertook the process for the revaluations that will be in place from April 2026. Those are set on property values from 2024.

Yes, there is an unwind from the pandemic, in terms of increases in businesses’ property values as a result of businesses recovering from the pandemic. We were aware of the impact of the valuation, and of the fact that the previous Government did not have any plans whatsoever to extend the temporary pandemic support. We extended it for one year, and over the course of the next three years we are phasing it out, with the support of Government decisions worth £4.3 billion, and our transitional relief scheme.

I will not comment on speculation, but the shadow Chancellor referred to borrowing. Over the course of this Parliament, we will see the fastest reduction in borrowing of any G7 economy. Borrowing is set to fall in every single year of the forecast because of the decisions that the Chancellor took at the Budget. We have doubled our headroom against our fiscal rules, and we are seeing a warm response from private sector investors and the markets as a result of the decisions that the Government have taken.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Many pubs in my constituency are seeing eye-watering increases in business rates. We know from the Valuation Office Agency, which gave evidence to the Treasury Committee last week, that the formula used is the same formula that has been used for 20 years. This should have been no surprise, as the shadow Chancellor said, yet we learned in that meeting that more than 2,000 pubs have had their business rates doubled. This Government came in with a mission to transform business rates, and they came in part way through a valuation cycle. Aside from the question of what will happen to the hospitality sector, where are the plans for the reform of business rates in the medium to long term?

[Dan Tomlinson]

I thank my hon. Friend for her leadership of the Treasury Committee. At the Budget, we set out the first significant fundamental reform of the business rates system that we have ever seen. For the first time, there is a very significant divergence in the tax rate paid by businesses on our high streets and by the very largest businesses, including online giants. The tax rate is around 13p lower for high street businesses than it is for the largest businesses. That is a 25% reduction, which cost around £1 billion. It is a £1 billion reduction for businesses on the high street, paid for by higher taxes on those who can most afford it.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Mr Speaker]

We’re at last orders. Come on, Minister.

[Dan Tomlinson]

I do not know what the current Government position is on whether pubs are allowed to sell takeaway pints, but I hope that would be allowed in Shropshire if I were to visit. However, I have about 30 pubs in my north London constituency, and I have many conversations with publicans both locally and in my role as Exchequer Secretary.

Agricultural Property Relief and Business Property Relief

Debate between Lindsay Hoyle and Dan Tomlinson

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

Yes, I do believe that we have got the balance right. It is worth noting that the top 4% of claims accounted for over half the Exchequer cost of business property relief and the top 7% of claims accounted for 40% of the Exchequer cost of agricultural property relief. That is hundreds of millions of pounds in tax that was forgone but will now be raised under these changes from the very largest estates. I thank my hon. Friend for his engagement on this issue over recent weeks and months.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Dan Tomlinson]

I thank my hon. Friend for her question and for her work on the Environment, Food and Rural Affairs Committee on this and many other important issues that affect rural communities up and down the country, as well as in her constituency—a fantastic part of the world that I am sure I will be able to visit soon. She is right that the Government are taking steps—for example, through our £11.8 billion fund to support sustainable farming and food production—and I look forward to working with Ministers in other Departments and across Government to ensure that we continue to support our rural and farming communities.

[Mr Speaker]

I call the Chair of the Environment, Food and Rural Affairs Committee.

--- Later in debate ---

[Dan Tomlinson]

My hon. Friend is right to say that we on this side of the House are the true and better representatives of the rural community. There are over 150 MPs on this side of the House who represent rural or semi-rural constituencies—I believe that there are as many Labour MPs representing rural constituencies as there are MPs on the blue Opposition Benches.

[Mr Speaker]

I call the Chair of the Public Accounts Committee.

Oral Answers to Questions

Debate between Lindsay Hoyle and Dan Tomlinson

Tuesday 9th December 2025 Commons Chamber

[Dan Tomlinson]

Yes.

[Mr Speaker]

I call the Conservative spokesperson.

--- Later in debate ---

[Mr Speaker]

Order. The hospitality sector might use the rail industry, with freight, so I am sure we can get something on that.

[Dan Tomlinson]

I am sure that many of us do jump on the train to support our hospitality businesses. The consultation that my hon. Friend mentions, which we published on the day of the Budget, is an important piece of work. Chapter 4 of our call for evidence on how we can reform business rates to support investment will be important. We recognise that airports and other large infrastructure are valued in a different way from other business properties, and we want to look at the changes that we can make to support those businesses, which have seen very significant increases in their rateable values. Under the scheme that we have announced, they will of course be capped as well.

[Mr Speaker]

I call the shadow Minister.

[James Wild (North West Norfolk) (Con)]

The Chancellor promised a new golden era of hospitality, but the reality of her business rates raid, as the British Beer and Pub Association has said, is

“sleepless nights, pay cuts and staff layoffs”

for publicans, who will be paying an extra £13,000 on average. Why did the Chancellor tell businesses last week that their taxes were going down when they are going up, and will she think again and change the multipliers?

[Dan Tomlinson]

The multipliers are a product of the change in the valuation, and they did come down. We brought them down even further for retail, hospitality and leisure businesses. Without intervention this year, the bills paid by pubs would have increased by 45% as a result of the increase in value since the pandemic; because of this Government’s significant intervention this year, bills are going up by 4%. That is the impact of the changes this Government have made.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Dan Tomlinson]

At the Budget, we came forward with a revision to the policy to support people whose spouses have already passed away, and we made the allowance transferable between the spouses. That change will reduce the number of farms affected by the agricultural property relief changes from about 500—as was estimated at the previous Budget—to 375, when coupled with changes to the underlying economic forecast. The policy raises money from those with the largest estates in a fair way, and I encourage Members in all parts of the House to consider whether or not—

[Mr Speaker]

Ahem.

[Dan Tomlinson]

I will stop there, Mr Speaker.

Oral Answers to Questions

Debate between Lindsay Hoyle and Dan Tomlinson

Tuesday 4th November 2025 Commons Chamber

[Dan Tomlinson]

I thank my hon. Friend for her question, and for her time last week—it was good to meet her to talk about important issues affecting farmers and rural communities. On balance, the Government believe that the policy position that was set out at last year’s Budget is the right one, and we will be continuing with it.

[Mr Speaker]

I call the shadow Minister.

[James Wild (North West Norfolk) (Con)]

This morning the Chancellor failed to take responsibility for her poor choices in a Budget that whacked up taxes, borrowing and spending, and made it clear that she would once again break her promises on tax. The farmers whom I have met have been in tears about the family farm tax, not because they are worried about losing their jobs but because the Chancellor is putting generations of farming at risk. Can the Minister tell the House whether the Chancellor has actually met any farmers, the NFU or other farming organisations to understand the impact of her policy and why she should scrap the family farm tax?

[Dan Tomlinson]

The Government have assessed the impact of this policy. According to the estimates that we issued at the time of last year’s Budget, about 500 farms would pay additional tax as a result of the changes; those numbers were contested by all Opposition Members, but the CenTax report—which the hon. Member has said that he and others are interested in reading—backs them up and confirms the Government’s estimates.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Dan Tomlinson]

I am not sure that the matter that the right hon. Member just raised has much to do with HMRC.

[Mr Speaker]

I call the Chair of the Treasury Committee.

--- Later in debate ---

[Mr Speaker]

Order. Sit down.

[Dan Tomlinson]

I thank the hon. Member for his question, and I remind him of the landmark trade deal that this Government secured with India. He criticises the Government for not doing enough, but we have secured a trade deal with India, the EU and the US. We are also reducing tariffs to support industry and investing in Scotland with a record-breaking Budget to support jobs, investment and growth, and the public sector across the whole of Scotland.

--- Later in debate ---

[Mr Speaker]

Order. Members are meant to shorten their questions for topicals.

[Dan Tomlinson]

We will be introducing permanently lower rates for those businesses in the Budget.

Oral Answers to Questions

Debate between Lindsay Hoyle and Dan Tomlinson

Tuesday 9th September 2025 Commons Chamber

[Mr Speaker]

Minister, welcome.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

Thank you, Mr Speaker. The immediate task facing the Labour Government was to take action to stabilise the public finances and invest in our public services. On national insurance, we did that in a way that protects the smallest businesses by increasing the employment allowance from £5,000 to £10,500. That means that 865,000 employers will pay no national insurance contributions at all, and more than half will either gain or see no change.

--- Later in debate ---

[Dan Tomlinson]

Yes, I agree strongly with my hon. Friend that Opposition Members continue to will the ends—they want the spending on public services—but are not willing to come forward with a plan for the means and the money to invest in our public services so that we can change things for people up and down this country.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Dan Tomlinson

Wednesday 30th April 2025 Commons Chamber

[Dan Tomlinson (Chipping Barnet) (Lab)]

Q2. Mr Speaker,“there is going to have to be a coming together of Reform and the Conservative party in some way”—a deal, a pact or a merger. Those are not my words, but the words of the most senior Tory in elected public office in the country, the Mayor of the Tees Valley. If senior Tories are plotting it, and the Leader of the Opposition will not deny it, is not the only way to stop the plot to vote Labour tomorrow?

[Mr Speaker]

Order. There is no need to answer that, Prime Minister; you have no responsibility for any of that.

Oral Answers to Questions

Debate between Lindsay Hoyle and Dan Tomlinson

Tuesday 19th November 2024 Commons Chamber

[Mr Speaker]

We have been very slow to get to topicals, so let us see if we can speed it up. Dan Tomlinson will set a good example.

[Dan Tomlinson (Chipping Barnet) (Lab)]

T1. If he will make a statement on his departmental responsibilities.