Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to provide additional funding to public bodies for the increase in business rates for hereditaments with a Rateable Value above £500,000.

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

This tax cut must be sustainably funded, and so we intend to apply a higher rate from 2026-27 on the most valuable properties - those with a rateable value of £500,000 and above, representing less than one percent of all properties.

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, when setting these budgets.