Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the new surcharge on hereditaments with Rateable Values above £500,000 from 2026-27 will be revenue neutral in relation to the cost of the new Retail, Hospitality and Leisure rate multiplier from 2026-27.

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with Rateable Values (RVs) below £500,000 from 2026-27.

This tax cut must be sustainably funded, and so we intend to apply a higher rate from 2026-27 on the most valuable properties - those with RVs 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 rates for these new business rates multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context. When the new multipliers are set, HM Treasury intends to publish analysis of the expected effects of the new multiplier arrangements.