To ask the Chancellor of the Exchequer, what assessment she has made with Cabinet colleagues of the potential merits of abolishing business rates.
Answered on
31 October 2024
The government will create a fairer business rates system that protects the high-street, supports investment, and is fit for the 21st century.
Autumn Budget 2024 announced the first steps including an intention to introduce permanently lower multipliers for high street retail, hospitality, and leisure (RHL) properties from April 2026. To fund this sustainably the government also intends to introduce a higher multiplier on properties with Rateable Values (RV) of £500,000 or more.
During the interim period, for 2025-26, RHL properties will receive a 40% relief on business rates bills up to a cash cap of £110,000 per business. The small business multiplier paid by properties with RVs below £51,000 will also be frozen for a further year.
The government published a discussion paper at Budget which sets out priority areas for further reform and invites stakeholders to a conversation about transforming the system over the Parliament.