Business Rates: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) the withdrawal of the Retail, Hospitality and Leisure multiplier and (b) imposition of the new £500,000 multiplier on the marginal tax rate on business rate bills from April 2026 at the £500,000 Rateable Value; and what assessment she has made of the potential merits of tapering the multipliers in the same manner as small business rate relief.
Answered by James Murray
As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000 from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) 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.
Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
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