Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of changes to retail, hospitality and leisure rate relief between 2024-25 and 2025-26 on levels of business rates for municipal swimming pools.

Without any Government intervention, Retail, Hospitality and Leisure (RHL) relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.

At Budget, the Government also announced that from 2026-27, it intends to introduce permanently lower tax rates for RHL properties with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on the most valuable properties, which includes the majority of large distribution warehouses, including warehouses 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.