Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether (a) local authorities, (b) state schools, (c) universities and (d) NHS Trusts subject to the business rates surcharge for properties with a rateable value over £500,000 from April 2026 onwards will receive compensation for those business rates.

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 retail, hospitality, and leisure (RHL) properties, from 2026-27.

This tax cut must be sustainably funded, and so from 2026-27 we intend to introduce a higher rate on those properties with Rateable Values of £500,000 and above. This will apply to the most valuable properties, including large distribution warehouses such as those used by online giants, so that they can help support the viability of high streets.

The Spring Statement confirmed the spending envelope for phase 2 of the spending review. We will consider the full range of priorities and pressures facing departments in the round, including any impact of the higher multiplier, when setting these budgets.

Final details on the large business multiplier will be set out at Budget 2025, in light of the outcomes of the 2026 revaluation.