To ask the Chancellor of the Exchequer, what recent progress she has made in implementing a new business rates regime.
Answered on
16 May 2025
Autumn Budget the Government announced an intention to introduce permanently lower tax rates for 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 include the majority of large distribution warehouses, including those used by online giants.
The Non-Domestic Rating (Multipliers and Private Schools) Act gained Royal Assent on 3 April, giving the Government powers to introduce new multipliers for retail, hospitality and leisure properties and high-value properties, and ending charitable rate relief for private schools.
At the Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Officials have conducted a number of roundtables with interested stakeholders, and I have similarly held roundtables and spoken to businesses directly to hear their views.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.