Business Rates: Retail, Hospitality and Leisure

Lord Freyberg Excerpts

Tuesday 20th January 2026 Lords Chamber

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

As the noble Baroness knows, and as I have said before, the previous revaluation was based on property values during the Covid pandemic, which meant that rateable values were much lower. That means that some businesses, including retail, hospitality and leisure venues, are now seeing an increase as a result of this valuation. At the Budget we therefore announced three elements of support at a total cost of £4.3 billion. We implemented transitional relief; we have capped the increase for any business whose value has increased so that they are no longer eligible for small business rates relief; and we have expanded the supporting small businesses scheme.

But, as the noble Baroness quite rightly says—and as I have acknowledged in your Lordships’ House before—the revaluation means that pubs and others will struggle in relation to the business rates applicable to them. That is why we are working with the sector to ensure that it gets the support it needs. Noble Lords will have heard what the Prime Minister and the Chancellor have both said on this in recent days. I will not add to that now or comment on speculation. When there are further comments to be made, I am sure I will be back here to discuss them with noble Lords.

[Lord Freyberg (CB)]

My Lords, given that grass-roots music venues and recording studios do not qualify for RHL relief because of the way “visiting members of the public” is defined, will Ministers commit to reviewing or amending the eligibility criterion so that businesses integral to the creative economy are not excluded?

[Lord Livermore (Lab)]

I absolutely hear what the noble Lord says, and I understand the points he is making. As I said, noble Lords will have heard what the Prime Minister and Chancellor have said in recent days. I will not add to that now, but when there are further comments to be made, I am sure I will be able to discuss them with the noble Lord.