Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal steps she plans to take to support small businesses with (a) energy prices, (b) inflation and (c) business rates.

At Autumn Budget the Government announced it was freezing the small businesses multiplier for 2025-26, and extending the retail, hospitality and leisure (RHL) business rates relief for 1-year at 40% (up to a cash cap of £110,000 per business). This means over a million properties will be protected from inflationary increases. 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.

On energy prices, the Government supports businesses with electricity costs through the British Industrial Energy Supercharger. This is targeted towards businesses that are simultaneously more exposed to competition through trade and more impacted by higher energy prices. Currently the scheme saves businesses approximately 34% on electricity costs.

The Bank of England has responsibility for sustainably returning inflation to the 2% target, and the Government is supporting them to control inflation by reducing borrowing year on year from 2025-26 and meeting the fiscal rules.