Business Rates: Retail, Hospitality and Leisure

Harriett Baldwin Excerpts

Monday 19th January 2026 Commons Chamber

[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.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The problem is that the November Red Book stated:

“The high street will benefit from permanently lower business rates for retail, hospitality and leisure”.

Businesses up and down the land think that was entirely misleading. We have had briefings to the newspapers that there will be a change, but the Minister is saying that that is not happening, and that change will be made through the normal processes, which I interpret to mean in the next spring statement. Those in businesses are lying awake at night, worried about these increases, so can the Minister tell them when relief will be on its way?

[Dan Tomlinson]

The changes at the Budget led to a reduction in the tax rate paid by businesses on the high street. That was a result of the reforms that this Government have brought in. We have been clear about the need to start the work to rebalance the business rates system to support our high streets. Because the pandemic relief is being unwound over the coming years—something that the previous Government would have done overnight in 2025, had they won the general election—and because of the increase in business rate values as we come out of the pandemic, some businesses are seeing increases in their bills. We have capped those increases significantly this year and over the coming three years, providing £4 billion of support. On the hon. Member’s point about updates being made in the usual way, it is of course possible for Ministers to make statements in the House.