Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the link between business rates and town centre economic activity in Surrey Heath constituency.

High streets are focal points of economic and social activity. They are a point of local pride and reflect the unique character of communities. As the business rates burden falls more heavily on property-intensive sectors, the Government wants to ensure that the business rates burden is permanently rebalanced, supporting high street and town centre businesses such as those in Surrey Heath.

That is why the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026/27. This permanent tax cut will ensure that eligible RHL properties benefit from much-needed certainty and support.

Ahead of these changes being made, the Government recognises that businesses will need support in 2025/26. As such, the Government has prevented the current RHL 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, and frozen the small business multiplier.

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, as well as the 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.