Business Rates: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment she has made with Cabinet colleagues of the potential impact of changes to the Retail, Hospitality and Leisure Business Rates Relief Scheme on businesses.
Answered by James Murray
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties (RHL) with rateable values below £500,000 from 2026-27.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. Without any Government intervention, RHL relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.
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