Business Rates Relief: High-street Businesses

Peter Fortune Excerpts

Wednesday 4th June 2025 Westminster Hall

[Peter Fortune (Bromley and Biggin Hill) (Con)]

It is a pleasure to serve under your chairmanship, Ms Jardine. I thank my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson) for securing the debate. I agree with nearly everything he said, with one notable exception: the constituency with the finest high streets is, of course, Bromley and Biggin Hill.

High streets matter. They are the economic heart of our cities, towns and villages, supporting local jobs and serving as a social hub for communities, as my right hon. Friend said. When they are in decline or struggling, communities feel it: not only are there fewer jobs and less cohesion locally, but there is a deep sense of loss. Shuttered shops and empty streets shatter civic pride. While too many communities have seen their local high streets decline, we avoided mass closure during the pandemic, thanks to generous public support.

Retail, hospitality and leisure relief, under which firms were initially offered 100% relief on business rates with a cap of up to £110,000, was one such pivotal measure. It was a lifeline for many businesses, and it remained a lifeline through the energy crisis and the subsequent inflation. Although it was intended as a temporary measure, that tax break remains crucial to the recovery of high streets and to local growth. It is not yet time to rapidly reduce it. That is why the Government’s decision to reduce the relief from 75% to 40% is a huge blow. The change effectively doubles the business rates bill for retail, hospitality and leisure firms, and it comes on top of the high energy costs and above-target inflation that are squeezing businesses.

In my constituency we are fortunate to have successful high streets, from Bromley town centre, which is home to more than 700 businesses and supports 20,000 jobs, to the smaller parades in Hayes, Biggin Hill, Coney Hall, Bickley and Keston. However, they remain under pressure from rising costs, inflation and high energy prices, and the same challenges are squeezing consumer spending. It is precisely the wrong time to rapidly reduce the business rates relief. For an independent pub in my constituency with a rateable value of £98,000, the changes to the relief and the increase in the standard multiplier will mean an increase of nearly £20,000 in its tax bill.

It is especially reckless because this is not the only Government policy with an impact on our high streets. In one swoop, Ministers have also hiked the minimum wage, created swathes of new employment red tape and introduced a substantial increase in national insurance contributions. The Government have mixed an expensive, anti-business cocktail for our high streets that few businesses can afford. It will mean fewer jobs, less investment and closures, at a time when we want to grow our local economies.

The Government’s boast at last year’s tax-hiking Budget was

“a penny off the pint”.—[Official Report, 30 October 2024; Vol. 755, c. 820.]

But behind that lacklustre announcement, they have not been honest about the collective impact of their policies, which are costing high street businesses an absolute fortune. If the Government are serious about securing investment and growing the economy, they need to rethink their decision to rapidly reduce this critical relief, before they hollow out Britain’s high streets and pull down the shutters for good.