Business Rates: Retail, Hospitality and Leisure

Darren Paffey Excerpts

Monday 19th January 2026 Commons Chamber

[Dan Tomlinson]

This Government understand the pressures that hospitality businesses, and pubs in particular, are facing. One of the pressures, which I have heard about very clearly, relates to the fact that the previous Government did not invest in our energy security, which would have ensured that businesses and families had lower energy bills and certainty about future bills, and as a result those businesses and families have seen their energy bills surge. In 2022, under the previous Government, we saw inflation hit 11%, and it is things like that that have made it difficult for small businesses up and down the country.

[Darren Paffey (Southampton Itchen) (Lab)]

We all know that we are where we are precisely because of the disastrous legacy that we were left by the Conservatives, who made unfunded promise after unfunded promise. I welcome the Minister’s reassurance about transitional relief and the caps on the increases, but cafés and small hospitality businesses in Southampton are concerned not just about the future, but about the now, so what message would he give them to assure them that this Government are pro-business and have their back?

[Dan Tomlinson]

When it comes to support for businesses, we are making sure that we bring back economic stability to this country, with six interest rate cuts that will reduce the cost of borrowing for businesses and households. The economic stability that we have provided has meant that wages went up faster in the first year of this Government than they did in the whole first 10 years of the previous Government. We are supporting people up and down the country with the cost of living and providing stability for businesses in the corporation tax system, keeping it at the lowest rate in the G7 as part of our commitment to our corporate tax road map.