Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 15 January 2025 to Question 103891 on Business Rates: Tax Allowances, what is the evidential basis for the statement that the temporary Retail, Hospitality and Leisure relief has been winding down since Covid.

The Retail, Hospitality and Leisure (RHL) relief on business rates has been reduced over time since 2020/21, when it was set at 100%. In 2021/22, this relief was lowered to 75%, in 2022/23 it was 50%, in 2023/24 and 2024/25 it was 75%, and in 2025/26 the relief was lowered to 40%.

At Budget, the Government announced it was extending the Supporting Small Business Relief scheme to those businesses who are currently receiving RHL Relief. This scheme caps the increases in bills they can face in each of the next 3 years, calculated from a baseline that includes the effect of the RHL relief. This means that many of those currently getting RHL relief will benefit from SSB relief next year.