Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of a lower business rates multiplier for pubs on levels of investment.

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

In April 2026, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that eligible properties, including pubs, benefit from much-needed certainty and support.

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, as well as the broader economic and fiscal context, into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

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. Under the previous Government, RHL relief was due to end entirely in April 2025, and so by extending it, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.