Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to replace the business rates system from 2026-27; and whether she plans to hold a consultation to inform the new system.

Over the course of this Parliament, the Government will create a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.

The Government published a Discussion Paper at Autumn Budget 2024 setting out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. The Treasury received over 160 written responses to that Discussion Paper and met with over 250 stakeholders.

On 17 February, the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage with the Government on business rates reform going forwards.

In the 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 Budget 2025.