Business Rates Reform

Lord Sharkey Excerpts

Monday 23rd June 2025 Lords Chamber

[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.

[Lord Sharkey (LD)]

My Lords, can the Minister say which of the recommendations set out in the 2023 report on business improvement districts have been implemented? In particular, what consideration have the Government given to reinstating the BID loan fund? What plans are there to set up more property owner BIDs outside London, as the report recommended? Are there any plans to assist with the setting up of BIDs in regions in the north and east, where they are scarce?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. On this Government’s proposals for improving BIDs, the English Devolution White Paper, which I mentioned, set out our intention to strengthen BIDs. We will come forward with further proposals to do so in due course.