Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made a recent assessment of the potential impact of business rates on small and medium-sized enterprises.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.

To support with bill increases, the Government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

The Government is introducing new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £1 billion per year and will benefit over 750,000 properties.

From April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget and then bills will be frozen in real terms for a further two years.

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.

Around a third of properties already pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.