Business Rates Reform

Lord Bailey of Paddington Excerpts

Monday 23rd June 2025 Lords Chamber

[Lord Livermore (Lab)]

I thank my noble friend for his question and pay tribute to his work and his expertise in this area. As he knows, business improvement districts play an important role in improving the local trading environment in our high streets and town centres, investing over £154 million each year in their local areas.

On the consultation on future reforms, my honourable friend the Exchequer Secretary, together with Treasury officials, has engaged extensively with stakeholders to codesign a fairer, more modern business rates system. I know that the Association of Town & City Management, which my noble friend mentioned, has been an important part of that. Later this summer, we will publish an interim report that sets out a clear direction of travel, with further policy detail to follow in the Budget.

As for online voting, in the English Devolution White Paper, the Government recognised the importance of ensuring high levels of turnout. My colleagues at MHCLG will come back with further proposals in due course.

[Lord Bailey of Paddington (Con)]

My Lords, what assessment have the Government made of the impact of changing business rates here in London on the West End? High Streets UK has labelled the Bill a bit of a disaster and said it will be bad for growth, bad for investment and bad for jobs, and puts too much burden on Britain’s flagship high streets.

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. As he will know, the current business rates system, with temporary reliefs for retail, hospitality and leisure, creates a yearly cliff edge for the sector, disincentivises investment, creates uncertainty and places an undue burden on our high streets. Exactly because of and recognising that, to support our high streets, the Government announced at the Budget last October our intention to introduce permanently lower tax rates for retail, hospitality and leisure properties with a rateable value below £500,000 from 2026-27. The rates will be set at the Budget this autumn so that the Government can take account of the revaluation outcomes and the broader economic and fiscal context in their decision-making.