Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the Government’s business rates policy in supporting small and medium-sized businesses.

Small Business Rate Relief (SBRR) is available to businesses with a single property with a rateable value below £15,000. Properties under £12,000 receive 100 per cent relief, and there is tapered support available to properties valued up to £15,000.

The Department for Levelling Up, Housing and Communities publishes statistics annually (https://www.gov.uk/government/collections/national-non-domestic-rates-collected-by-councils) which show that over a third of properties in England (700,000) already pay no business rates at all as a result of 100 per cent SBRR, with an additional 51,000 in the taper.

The eligibility criteria for SBRR ensures that it effectively targets the smallest businesses where help is needed most and provides good balance between support and cost to the Exchequer.

At Autumn Statement 2022, the Government announced a package of changes and tax cuts worth £13.6 billion over the next five years. This includes new measures to reduce the burden of business rates on firms, including a freeze in the multiplier for 2023-24, extended relief for high street businesses in the retail, hospitality and leisure sector, an exchequer funded transitional relief scheme, and targeted support for small businesses.