Business Rates: Tax Allowances
The question
To ask the Chancellor of the Exchequer, with reference to the Answer of 18 December 2025 to Question 99813 on Business Rates: Tax Allowances, how many and what proportion of ratepayers who will see no increases were eligible for Retail, Hospitality and Leisure relief in 2025-26.
Answered by Dan Tomlinson
Over half of all ratepayers will see no bill increases from the 2026 business rates revaluation, including 23% seeing their bills go down. Furthermore, most properties seeing increases will see them capped at 15% or less in 2026/27, or £800 for the smallest.
The Government has introduced new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties. The RHL multipliers are being paid for through a high-value multiplier on the top one per cent of most expensive properties, including many large distribution warehouses, such as those used by online giants.
The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
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