Business Rates

Daisy Cooper Excerpts

Tuesday 27th January 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

If the Government are serious about saving the high street, then these measures can only be the start. Since the Government’s first Budget, we Liberal Democrats have been warning that high streets were at risk if the Government did not make the various changes that they have made over the past 18 months.

A number of questions arise from today’s statement. There are 11 pubs in my constituency, not all of which could be described as large, that have a rateable value of more than £100,000 because of the ridiculous valuation system, and they will still see their rates bills go up. There will be such pubs across the country, but is it correct that they will get only half of the percentage relief? Pubs can already have 50 temporary event notices a year, so extending that is simply a soundbite solution without a problem.

I am glad that the Government are looking at hotels, but what is the timeframe? The Samuel Ryder hotel in my constituency tells me that its bill is going up by 157% in the first year alone, and it will not be the only such hotel. Will the new formula for hotels be in place in April, or will they be left in limbo?

The statement still offers nothing for the rest of the retail, hospitality and leisure sectors—the restaurants, soft play centres and high street shops that made business, investment and hiring decisions based on the expectation of the full 20p discount. I welcome the announcement of a high street strategy, which we Liberal Democrats will engage constructively with, but will the Minister start now by heeding our calls to direct the Competition and Markets Authority to look at the energy market, which is blocking hospitality businesses and other sectors from getting the best energy deals? Will he also look at our fully funded proposal to slash VAT until April 2027, to give our high streets a boost?

Over the past few weeks and months, getting answers and data from the Government has been like getting blood from a stone. Just 90 minutes ago, I asked the Minister if he would tell us what he knew and when; he said he would, but he has not.

Finally, on the methodology for pubs, the use of fair maintainable trade—turnover—has long had its day, but may I urge the Minister to allow for parliamentary scrutiny? None of the current legislation relating to pubs or business rates allows for any scrutiny in this House or the other place. I asked the Government about the valuation methodology back in July 2024; it was one of my first written questions after the general election, but it has taken 18 months for the Government to listen. Will they please allow this House to scrutinise their plans so that we can get a long-term fix to save our pubs?

[Dan Tomlinson]

The 15% reduction will apply to all pubs. As the hon. Member knows, there are different caps for pubs depending on their size, but if bills had been frozen, no bill would have fallen next year. Instead, because we have decided to apply the 15% reduction, around 75% of pubs will see their bills either stay the same or fall. I acknowledge what she says about the very largest pubs, but we will still significantly reduce the increase that they would have expected this year. Their bills will then be frozen in full in years two and three of the period before the revaluation review—I am glad that the hon. Member is able to welcome that review. Its results will be implemented for future revaluations.

The hon. Member mentioned temporary event notices. We are trying to implement the recommendations of the licensing review, which was carried out in conjunction with pubs and other businesses in the sector, so although she may think that changes such as these do not touch the sides or make a difference, pubs themselves told us that—in addition to ensuring that we could support them in the right way fiscally—such changes would be welcome. I hope that pubs that are able to make use of them will do so.

The hon. Member also asked about the 20p multiplier. She is right that we legislated for a reduction of up to 20p, but we have to see these things in the balance. The decision to reduce the multiplier by 5p came with a £900 million price tag; reducing it by the full 20p would cost significantly more. Taken in the round, our package of support has a lower tax rate within the system—a lower multiplier—but also steps in with caps to support businesses if they are experiencing increases in their values or having to adjust to the slow unwinding of the pandemic relief.

The hon. Member asked about VAT. All I will say—she will expect this—is that when the Liberal Democrats had the chance in government, they put VAT up; now, they seem to be calling for it to go down.

Finally, on the question of what I knew and when, as the VOA set out, Ministers were provided with details of the increases in the valuations. However, at that time, we did not foresee—I did not foresee—that after the changes in the rateable values that were published at the Budget, pubs and their representative bodies would want to withdraw their support for the independently and previously agreed methodology. Given that and the Government’s judgment that there are issues, to which the hon. Member has referred, we thought it was right to pause, review the methodology and ensure that it is fit for the future for pubs and hotels.