Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has had recent discussions with the food and drink wholesale sector on the classification of wholesale premises as online retail warehouses in the Transforming Business Rates Policy Paper; and what assessment she has made of the potential impact of this classification on the sector.

HM Treasury releases a quarterly record of Ministers’ meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel.

The Transforming Business Rates Discussion Paper, published by the Government at the Autumn Budget, set out that we are creating a fairer business rates system that protects the high-street, supports investment, and is fit for the 21st century.

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27.

This tax cut must be sustainably funded, and so the Government intends to apply a higher rate from 2026-27 on the most valuable properties - those with a Rateable Value of £500,000 and above. These represent less than one per cent of all properties, but include the majority of large distribution warehouses, including those used by online giants.

The rates for any new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context. The statutory definition for qualifying RHL properties will be set out in regulations ahead of implementation in the 2026-27 financial year.