Business Rates

Baroness McIntosh of Pickering Excerpts

Thursday 29th January 2026 Lords Chamber

[Lord Livermore (Lab)]

I very much agree with everything that my noble friend said. Among the long litany of the previous Government’s failures, their failure on growth was one of their most significant. We saw Brexit and the Liz Truss mini-Budget, and we know what business thought of that. We saw business investment across the whole economy fall to the lowest level in the entire G7. My noble friend is also absolutely correct to point out that, every time we debate the economy in the Chamber, the noble Baroness opposite supports every single piece of spending that we announce but opposes every single piece of revenue raising. It is quite clear that those two things do not add up.

On the Tory record more widely, we should note that 7,000 pubs have closed in the past 14 years, and that the previous Government’s plans were to scrap entirely the temporary Covid retail, hospitality and leisure relief in 2025. Their plans show that they would have ended it overnight. We have chosen a different path by extending that support with the help of £4.3 billion of additional support.

[Baroness McIntosh of Pickering (Con)]

My Lords, it would be churlish not to welcome the measures—so far as they go—that the Chancellor has introduced. However, does the Minister accept that it is small family businesses—the hair salons, cafés and restaurants, among others, to which my noble friend on the Front Bench referred—that will be directly affected by the lack of support? Does he accept that, if these small family businesses do not get support, it will damage their programme for growth and lead to a lack of growth and a loss of jobs?

[Lord Livermore (Lab)]

I respectfully say to the noble Baroness that she must take what has been announced this week in the round with what was announced in the Budget. We spent £4.3 billion supporting exactly the type of businesses the noble Baroness mentions. We have expanded the supporting small business scheme to provide specific support to those who are currently eligible for the 40% RHL relief. Around one in three businesses continues to benefit from small business rates relief and does not pay anything at all. We have extended the second property grace period to support small businesses as they grow. So, I do not accept that we are not supporting those businesses. But equally, I absolutely understand the challenges that many retail, hospitality and leisure businesses are facing, which is exactly why, later this year, the Government will bring forward a high street strategy and work with businesses and representative bodies, looking at what more the Government can do to support our high streets.