Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to encourage retail businesses to return to the high street through changes to business rates.

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

 As set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure they benefit from much-needed certainty and support. The Government is sustainably funding this by introducing a higher tax rate on properties with RVs of £500,000 and above.

The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making.

Ahead of the new multipliers being introduced, the Government prevented RHL business rates 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.

The Government will also support those seeing the biggest increases at the revaluation. The Government will announce details at Budget 2025, in light of the revaluation outcomes.