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Business Rates: Tax Allowances

Asked by Wendy MortonConservativeTreasuryTabled Answered 21 November 2025UIN 90210

The question

To ask the Chancellor of the Exchequer, what discussions she has had with businesses on the potential impact of reductions in levels of relief through business rates relief schemes on those businesses.

Answered by Dan Tomlinson

The Treasury has engaged with a range of stakeholders on business rates about an array of topics. The Transforming Business Rates: Interim Report brings together extensive feedback from a broad range of stakeholders and outlines the Government’s next steps to deliver a fairer business rates system that supports investment and is fit for the 21st century.

As announced at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure properties with rateable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure they benefit from much-needed certainty and support.

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