Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that business rates reform supports regional economic growth in (a) rural and (b) coastal areas.

The Government is creating a fairer business rates system that protects the high street, supports investment and is fit for the 21^st century.

To ensure that key amenities are available, and that community assets are protected in rural areas, Rural Rates Relief provides 100% business rates relief for certain properties in eligible rural areas with populations below 3,000.

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

Ahead of these new multipliers coming into force, the Government prevented the current RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. We also froze the small business multiplier. Taken together with Small Business Rates Relief (SBRR), this protects over a million properties from inflationary increases.

As highlighted in the Transforming Business Rates Discussion Paper published at Autumn Budget 2024, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment. The Government will be publishing an Interim Report summarising stakeholder feedback to date, and setting out a clear direction of travel for the business rates system.