Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to reform business rates to reduce the financial burden on small high street businesses.

The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.

At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties that make up the backbone of our high streets, from 2026-27.

Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.

The Budget announcements reflect the Government’s first steps to support the high street. We want to go further to modernise the system, and so, we have published a Discussion Paper 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.

In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.