Small Businesses: Business Rates
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed changes to business rates on the level of employment in small hospitality, retail and leisure businesses.
Answered by Dan Tomlinson
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, the Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £1 billion per year and will benefit over 750,000 properties.
The Government is also supporting businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
The Call for Evidence, published at Budget, focused on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →