Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to reform business rates.

The government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.

Autumn Budget 2024 announced the government’s first steps, including an intention to introduce permanently lower multipliers for high street retail, hospitality, and leisure (RHL) properties from April 2026. The government intends to fund this sustainably via a higher multiplier on properties with Rateable Values (RV) of £500,000 or more.

During the interim period, for 2025-26, RHL properties will receive a 40% relief on business rates bills up to a cash cap of £110,000 per business. The small business multiplier paid by properties with RVs below £51,000 will also be frozen for a further year.

The government has published a discussion paper which sets out priority areas for further reform and invites stakeholders to a conversation about transforming the system over the Parliament.