Question to the HM Treasury:

To ask His Majesty's Government, further to the remarks by Lord Khan of Burnley on 1 April (HL Deb col 134) that clause 3 of the Non-Domestic Ratings (Multipliers and Private Schools) Bill provides powers to "exclude classes of hereditament from the higher multiplier", whether they will exclude those hereditaments that are publicly funded, including (1) hospitals, (2) police stations, and (3) educational buildings.

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27.

This tax cut must be sustainably funded, and so we intend to apply a higher rate from 2026-27 on the most valuable properties - those with a Rateable Value 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, so that they can help support the viability of high streets.

The Spring Statement confirmed the spending envelope for phase 2 of the spending review, which will deliver new mission-led, technology-enabled and reform-driven budgets for departments. We will consider the full range of priorities and pressures facing departments in the round, including any impact of the higher multiplier, when setting these budgets.

The rates for any new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context.