Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, further to paragraph 4.38 of the OBR, Economic and Fiscal Outlook, November 2025, CP1439, 26 November 2025, whether according to information held by HM Treasury, the 10.2 per cent increase in business rate receipts from 2025-26 to 2026-27 is a figure for (a) England, (b) Great Britain or (c) the United Kingdom.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This figure applies to the United Kingdom.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference paragraph 4.28 of the Autumn Budget 2025, HC1492, published on 26 November 2025, how many hereditaments will pay the business rate transitional supplement in 2026-27; what estimate she has made of the cost of the supplement; and for what reason the transitional relief is no longer funded by the Exchequer.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, further to the Autumn Budget 2025, for what reason alcohol duty is being uprated by RPI rather than CPI inflation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Office for National Statistics, regulated by the UK Statistics Authority, produces a range of inflation statistics. The most widely used estimates of inflation, both by Government and the private sector, are the Consumer Prices Index and the Retail Prices Index (RPI).
Alcohol duty, like many other taxes expressed in cash terms, is indexed to RPI.
On the wider considerations about the extent to which RPI is embedded in the UK's economic and legal system, I refer the Hon. Member to the answer given on 13 November 2025 to PQ UIN 88538.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Budget 2025, HC1492, 26 November 2025, Box 3.H, and to the HMT document, Effects of the business rates retail, hospitality and leisure multipliers and high value multiplier of 26 November 2025, what is the estimated saving to the Exchequer in 2026-27 relative to 2025-26 from central government no longer funding the Retail, Hospitality and Leisure rate relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. The Valuation Office Agency has published statistics on changes in the rateable value of properties in the 2026 revaluation.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. The 40% RHL relief was forecast to cost £1.7 billion in 2025/26, less than the £2.1 billion we are spending on Transitional Relief and Supporting Small Business relief in 2026/27. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The new RHL tax rates will be 5p below the national tax rates. Making the RHL tax rates even lower would have led to an even higher tax rate for high-value properties.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Budget 2025, HC1492, 26 November 2025, Box 3.H, and Table 4.1, and to the HMT document, Effects of the business rates retail, hospitality and leisure multipliers and high value multiplier of 26 November 2025, what is the estimated monetary total gross cost of the Retail, Hospitality and Leisure multiplier in 2026-27.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. The Valuation Office Agency has published statistics on changes in the rateable value of properties in the 2026 revaluation.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. The 40% RHL relief was forecast to cost £1.7 billion in 2025/26, less than the £2.1 billion we are spending on Transitional Relief and Supporting Small Business relief in 2026/27. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The new RHL tax rates will be 5p below the national tax rates. Making the RHL tax rates even lower would have led to an even higher tax rate for high-value properties.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether single person discount will apply to the high value council tax surcharge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The High Value Council Tax Surcharge levies a new charge on owners of residential property in England worth £2 million or more. The Government will consult on exemptions, reliefs, and the detail of a support scheme for those who struggle to pay the charge in the New Year.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, through what mechanisms and systems will the Valuation Office Agency revalue dwellings for the new council tax surcharge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency are developing their approach to the targeted valuation and will set out more details in due course, following the outcome of the Government's consultation.
In general, when valuing domestic properties, the VOA uses modern technology and industry standard techniques combined with freely available information including sales data, property attribute details and government records.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HM Treasury's document entitled Spending Review 2025, published on 12 June 2025, what is the estimated increase in (a) council tax revenue raised in cash terms for and (b) the increase in the average Band D rate of the police precept over the Spending Review period.
Answered by James Murray - Chief Secretary to the Treasury
As set out in the Spending Review 2025 document, published 11 June 2025, police core spending power includes projected spending from additional income, including estimated funding from the police council tax precept. The final police precept level and core government funding will be set out in the annual police funding settlement in the usual way.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Spending Review 2025, published on 11 June 2025, what discussions she has had with the Secretary of State for Housing, Communities and Local Government on the allocation of funds from the Growth Mission Fund.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Growth Mission Fund will invest £240 million of capital from 2026/27 to 2029/30 in projects that enable local job creation and the economic regeneration of local communities. Further detail on this fund and the criteria that will be applied for project selection will be set out in due course.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Spending Review 2025, published on 11 June 2025, what is the required evidential base behind funding from the Growth Mission Fund.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The government is establishing a Growth Mission Fund to directly support local economic growth. This fund will invest £240 million of capital from 2026/27 to 2029/30 in projects that enable local job creation and the economic regeneration of local communities. Further detail on this fund and the criteria that will be applied for project selection will be set out in due course.