Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the maximum additional business rate revenue that could be raised by the proposed new higher rate multiplier.

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable vales below £500,000 from 2026-27. This permanent tax cut will ensure that RHL businesses benefit from much-needed certainty and support.

This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties from 2026-27 - those with rateable values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.

The exact rates for any new business rate multipliers will not be set until Autumn Budget 2025 so that the Government can take into account the revaluation outcomes as well as the economic and fiscal context. Costings for these policies will be certified by the Office for Budget Responsibility and published at the Budget.