Business Rates: Tax Allowances
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 July 2025 to Question 68002 on Business Rates: Tax Allowances, what assessment he has made of the effectiveness of the communication with affected businesses of the change to reliefs in April 2025; and whether he has held discussions with stakeholders on that communication and the extent to which it allowed businesses to plan for the changes.
Answered by Dan Tomlinson
Retail, Hospitality and Leisure (RHL) relief has been extended year-by-year by previous Governments since the pandemic, creating uncertainty for businesses and an unsustainable fiscal pressure for Government.
Without any Government intervention, RHL relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government extended the relief at 40 per cent in 2025-26, up to a cash cap of £110,000 per business, ahead of our intended introduction of permanently lower rates for RHL properties from 2026-27.
As is typical with fiscal announcements, the Government announced this decision at Autumn Budget 2024, ahead of it coming into force in April 2025. On 19 November 2024, the Ministry for Housing, Communities and Local Government (MHCLG) communicated the Budget measures to Local Authorities via a Business Rates Information Letter. On 16 January 2025, MHCLG published final scheme guidance to help local authorities implement the relief.
The Government also carried out extensive engagement with stakeholders following Autumn Budget 2024 on business rates.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →