Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of the higher multiplier on properties with RV of £500,000 and above on the food and drink wholesale sector.

To deliver our manifesto pledge, from 2026-27, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support.

This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with a rateable value of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.

Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

The Government published the ‘Transforming Business Rates’ Discussion Paper at Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: https://www.gov.uk/government/publications/transforming-business-rates.