Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 March 2025, to Question 37217, on Energy: Shops, whether the installation of energy efficiency measures to meet the minimum energy efficiency standards are a positive material change for the purposes of (a) business rate valuations and (b) revaluations.

In assessing the effect of energy efficient measures, the Valuation Office Agency (VOA) must first consider the occupancy. If a shop is owner-occupied, then an Energy Performance Certificate is not required.

If the shop is let, the extent and nature of any works being undertaken are considered, to determine whether the installation of energy efficiency measures impact the rating assessment. These include where Minimum Energy Efficiency Standards (MEES) works are required to replace existing facilities with a modern equivalent. While MEES exemptions may apply, new installations such as heating and air conditioning are considered an improvement and may increase the rating assessment.

Improvement Relief may apply to support the occupiers of shops for rating assessment increases that occur following improvement works carried out after 1 April 2024.