Business Rates: Valuation
The question
To ask the Chancellor of the Exchequer, with reference to the policy paper entitled Transforming Business Rates: Interim Report, updated 17 September 2025, whether the proposed reforms on moving from a slab to slice system will be implemented for the introduction of the new surcharge for hereditaments over £500,000 Rateable Value.
Answered by Dan Tomlinson
The Transforming Business Rates: Interim Report, published on 11 September, sets out the Government’s next steps to deliver a fairer business rates system. The Interim Report brings together extensive feedback from a broad range of stakeholders and outlines the Government’s next steps to delivery a fairer business rates system, that supports investment and is fit for the 21st century.
Stakeholders told us that the business rates system can discourage expansion into bigger properties. The Government will explore the case to move to a marginal tax rate, similar to income tax, to support investment and expansion.
The Government will provide a further update at the Budget. Transforming the business rates system is a multi-year process. The Government will consider reforms beyond Budget 2025, and any reforms taken forward will be phased over the course of the Parliament.
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