Business Rates: Retail, Hospitality and Leisure

Cat Eccles Excerpts

Monday 19th January 2026 Commons Chamber

[Dan Tomlinson]

It is important to be clear that no pub will see their business rates bill go up by three times this year. [Interruption.] No, it is simply not the case. It is true that some businesses have seen significant increases in their valuations, but this year the Government are capping the increase in business rates bills at either £800 or 5%, 15% or 30%, depending on the size of the property. Yes, bills may be higher, and it could be by a large percentage if the rate is moving up by £800, but for the vast majority of businesses, the increase in their bills this year will be limited, due to the Government having intervened and provided more than £2 billion of support this year.

[Cat Eccles (Stourbridge) (Lab)]

I welcome noises from the Department about additional support for pubs, but this is not just about pubs; it is about all hospitality businesses, including music venues such as Claptrap the venue and Katie Fitzgerald’s in my constituency. They have been massively impacted by a perfect storm of new valuations by the Valuation Office Agency, the end of covid-related reliefs and rising energy costs. I also want to mention service-based industries, such as hair and beauty salons and indoor play centres. These businesses have limited opportunities to claim back VAT, as labour is their highest cost. When the Government consider additional support measures for hospitality, please can they ensure that all businesses are included?

[Dan Tomlinson]

Hospitality businesses are the cornerstone of our communities, providing life and vibrancy to high streets up and down the country. The Government are committed to continuing to support their growth and their success. We value the work that employees in that sector do—I believe that around 2 million people work in hospitality across the country—and the work of business owners who seek to grow and expand their hospitality businesses. Precisely because we value their work and the work of businesses on the high street, we fundamentally redesigned the transitional relief scheme, so that it takes the 40% reduction in bills as its jumping-off point. That reduction is a result of this Government’s decision to extend the pandemic-related relief. The previous Government had not costed or funded that, and they would have ended it overnight if they had won the general election in 2024.