Question to the HM Treasury:

To ask His Majesty's Government whether they plan to extend the business rates relief scheme for the night-time economy sector; and what steps they are taking towards business rates reform for that sector.

To deliver our manifesto pledge, from 2026/27, we intend to introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, which will include many properties used by the night-time economy sector. This permanent tax cut will ensure that they benefit from much-needed certainty and support.

Ahead of the new multipliers coming into force, we recognise that businesses will need support in 2025/26. As such, we have extended the RHL business rates relief 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.

Eligibility for the new RHL multipliers is intended to broadly reflect the scope of the existing RHL relief scheme and will be set out in legislation later this year. Eligibility for the RHL relief scheme is set out in guidance published by the Ministry of Housing, Communities & Local Government and includes many night-time economy businesses.