Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of the 2026 business rates revaluation for hospitality businesses on (a) the number of businesses subject to the surcharge on businesses over £500,000 and (b) the total level of taxes paid by the hospitality sector; and what assessment she has made of the potential impact of the 2026 business rates revaluation on the number of jobs in the hospitality business sector.

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

As set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure they benefit from much-needed certainty and support. The Government is sustainably funding this by introducing a higher tax rate on properties with RVs of £500,000 and above.

The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

The Government will support those seeing the biggest increases at the revaluation. The Government will announce details at Budget 2025, in light of the revaluation outcomes.