Business Rates: Beer and Public Houses
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the long-term economic benefits of permanently reducing the business rates multiplier for the (a) beer and (b) pub sectors.
Answered by Dan Tomlinson
To deliver our manifesto pledge, we intend 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 RHL businesses benefit from much-needed certainty and support.
Eligibility for the new RHL multipliers is intended to broadly reflect the scope of the existing RHL relief scheme, and will be set out in legislation later this year.
Ahead of these changes being made, the Government recognises that business will need support in 2025/26. As such, we have extended the RHL relief for one year at 40 per cent up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025. By extending the relief, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.
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, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
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