Business Rates: Tax Allowances
The question
To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2024, HC 295, what the revenue effect will be of the combination from 2026-27 of the ending of 75% retail, hospitality and leisure (RHL) rate relief, the new RHL lower multiplier, and the higher £50,000+ multiplier.
Answered by James Murray
As set out at Budget, the government intends to introduce permanently lower tax rates for high-street retail, hospitality, and leisure (RHL) properties from 2026-27. However, this plan to provide support for the high street must be sustainable. That is why 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.
The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context. As set out at Budget, the Government intends for the lower multipliers to be funded by the new higher multiplier.
Ahead of these changes being made, we have prevented the cliff-edge of RHL relief ending in April 2025 by extending it for one year (2025-26) at 40 per cent up to a cash cap of £110,000 per business.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →