Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the impact of the business rates system on physical premises compared to online and out-of-town operators.
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 as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for 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 next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
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 new 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 Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. 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 Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the long-term sustainability of the current business rates model for high street businesses.
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 as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for 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 next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
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 new 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 Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. 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 Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what analysis has been conducted into levels of disparity between business rates increases for bricks-and-mortar businesses compared to those for warehouse and distribution premises.
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 as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for 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 next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
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 new 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 Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. 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 Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what modelling has been undertaken to assess the cumulative impact of business rates increases on high street viability over the next three years.
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 as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for 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 next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
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 new 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 Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. 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 Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what analysis has been conducted on the potential impact of business rates levels on commercial vacancy rates.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Empty Property Relief (EPR) operates by providing owners of empty non-domestic properties with 100% relief for the first 3 months (or 6 months for industrial properties) after a property becomes empty. If the property remains empty once the relief period ends, the owner must pay the property’s full business rates liability.
At Budget, the Government published a Call for Evidence at Budget which focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
The Call for Evidence published at Budget seeks further evidence on the role business rates and reliefs play in investment, including Empty Property Relief.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered freezing rateable values for small businesses at 2023 levels pending a full review of the business rates system.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 new 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 Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
The Government also published a Call for Evidence at Budget which explores how reform of the business rates system can be used to incentivise investment. This Call for Evidence builds on the findings set out in the Transforming Business Rates: Interim Report, which was based on written evidence from 141 stakeholders and engagement with 230 organisations.
Any reforms taken forward will be phased over the course of the Parliament.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration has been given to increasing permanent business rates relief for small and community-facing businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 new 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 Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
The Government also published a Call for Evidence at Budget which explores how reform of the business rates system can be used to incentivise investment. This Call for Evidence builds on the findings set out in the Transforming Business Rates: Interim Report, which was based on written evidence from 141 stakeholders and engagement with 230 organisations.
Any reforms taken forward will be phased over the course of the Parliament.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will undertake a full review of the business rates system.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 new 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 Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
The Government also published a Call for Evidence at Budget which explores how reform of the business rates system can be used to incentivise investment. This Call for Evidence builds on the findings set out in the Transforming Business Rates: Interim Report, which was based on written evidence from 141 stakeholders and engagement with 230 organisations.
Any reforms taken forward will be phased over the course of the Parliament.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate has been made of the annual income tax and National Insurance contributions generated by employment directly and indirectly supported by the Hemsby tourism economy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Revenue and Customs has not made estimate of total annual tax receipts generated by economic, employment or tourism related activity in Hemsby, Norfolk.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate has been made of the annual VAT revenue generated by tourism-related activity in Hemsby, including holiday accommodation, food and drink and local services.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Revenue and Customs has not made estimate of total annual tax receipts generated by economic, employment or tourism related activity in Hemsby, Norfolk.