Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of extending the business rates relief given to pubs to independent gyms and other leisure businesses.

Pubs rents in business rates valuations are analysed differently to some other sectors. While most hospitality and leisure properties are valued by comparing the size of the property, pubs are valued by comparing their turnover potential. Industry bodies have highlighted concerns with how costs are accounted for in this methodology, particularly during periods of high inflation. The Government agrees this needs to be looked at and is therefore launching a review which will explore how pubs are valued for business rates. In the meantime, pubs are being provided with additional support.

Independent gyms and other leisure businesses will continue to benefit from the wider £4.3 billion support package announced at Budget, which protects against ratepayers seeing large overnight increases in bills.

The Government has also introduced new permanently lower multipliers for eligible retail, hospitality and leisure properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties, including gyms and other leisure businesses.

As a result, over half of ratepayers see no bill increases this year, including 23 per cent whose bills go down. Most properties seeing increases have them capped at 15 per cent or less this year, or £800 for the smallest.