Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to introduce a permanent reduction in business rates for pubs.

We intend to introduce permanently lower tax rates for retail, hospitality and leisure (RHL) properties, including pubs, with rateable values below £500,000 from 2026-27, and fund this by introducing a higher multiplier on properties with rateable values of £500,000 or more. The multiplier rates will be confirmed at Autumn Budget 2025.

During the interim period, for 2025-26, RHL businesses will receive a 40 per cent relief on their business rates up to a cash cap of £110,000 per business, and the tax multiplier applied to small properties will be frozen. Under the previous government, RHL relief was due to end entirely in April 2025, and so by extending it, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.

The Government has also published a Discussion Paper setting out priority areas for business rates reform and inviting industry to co-design a fairer business rates system.

In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.