Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has had recent discussions with relevant stakeholders on the potential merits of introducing an exemption from the higher business rates multiplier for (a) cultural and (b) entertainment venues.

The Government has met with a wide range of stakeholders on business rates reform.

As announced at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure properties with rateable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure that eligible cultural and entertainment venues benefit from much-needed certainty and support.

This tax cut must be sustainably funded, and so the Government will introduce a higher rate on the most valuable properties in 2026/27 – those with RVs of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.

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.