Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with the Secretary of State for Business and Trade on the potential merits of reforming business rates in the period since the Spring Budget.

At Autumn Statement 2022, the Government announced a package of changes and tax cuts worth £13.6 billion over the next five years, including:

• a freeze to the business rates multiplier for 2023-2024, a tax cut worth £9.3 billion over the next 5 years, meaning all bills are 6 per cent lower than without the freeze;
• an increased 75 per cent relief for retail, hospitality and leisure (RHL) properties, up to a cash cap of £110,000 per business for 2023-24. This is a tax cut worth over £2 billion for around 230,000 RHL businesses, to support the high street and protect small shops;
• an Exchequer funded Transitional Relief scheme worth £1.6 billion to protect an estimated 700,000 ratepayers facing bill increases due to increases in rateable value. The Government has announced that it will permanently scrap ‘downwards caps’ which had restricted falling bills in previous schemes. This will benefit around 300,000 ratepayers who will see their full bill decrease from April 2023.
• Over £500 million of support over the next three years with a new Supporting Small Business scheme. This will cap bill increases to £50 per month (£600 per year) for businesses losing some or all of their Small Business or Rural Rate Relief due to the revaluation.

Treasury Ministers regularly engage with other Government departments and external stakeholders on a range of issues.