Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of increased business rates on the viability of large-format retail stores.

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

From 2026-27, the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values (RVs) under £500,000. The Government intends to fund this by introducing a higher multiplier on properties with RVs of £500,000 or more. These high-value properties cover the majority of large distribution warehouses, including those used by the online giants.

The final design of the new multipliers, including the rates, will be set at Budget 2025 so that we can take into account the upcoming revaluation outcomes, as well as the economic and fiscal context. When the new multipliers are set at Budget 2025, we intend to publish analysis of the effects of the new multiplier arrangements.