Business Rates: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what her policy is on business rate relief in (a) freeports, (b) investment zones and (b) legacy enterprise zones; and how that relief will apply to the new business rate multiplier on hereditaments over £500,000 rateable value.
Answered by James Murray
Freeports, Investment Zones and Enterprise Zones have access to a range of tax reliefs, including 100 per cent business rates relief. The eligibility criteria for business rates relief in Freeports and Enterprise Zones is available online: https://www.gov.uk/apply-for-business-rate-relief, as well as guidance for local authorities on granting Investment Zone business rate relief: https://www.gov.uk/government/publications/investment-zones-business-rates-relief-scheme-guidance-for-local-authorities/investment-zone-business-rates-relief-local-authority-guidance.
The Government has announced its intention 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. When calculating business rates liabilities, the multiplier is applied first and then reliefs are applied after. This means that eligible businesses in these areas will receive 100 per cent business rates relief on their liability under the new multipliers.
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