Asked by: Mike Reader (Labour - Northampton South)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to help support businesses to compete with direct-to-consumer online retailers that are based offshore.
Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)
We intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. This tax cut must be sustainably funded, and so we intend to apply a higher rate from 2026-27 on the most valuable properties - those with a Rateable Value of £500,000 and above. These represent less than one per cent of all properties, but include the majority of large distribution warehouses, including those used by online giants.
Ahead of these changes being made, we have prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
We are also working with businesses to understand their barriers to growth and High Streets will be a key pillar of our forthcoming Small Business Strategy.