Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will take steps to reduce business rates for (a) hospitality businesses, (b) pubs and (c) breweries.

As announced at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from April 2026. This permanent tax cut will ensure that eligible RHL businesses, including hospitality venues and pubs, benefit from much-needed certainty and support. Breweries that are wholly or mainly open to visiting members of the public (for instance, mainly used as a bar or for providing tours to the public) will also benefit from the lower multipliers.

The rates of the new 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.

Ahead of the new multipliers being introduced, the Government prevented 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, and froze the small business multiplier. By extending the relief, the Government has saved the average pub, with a RV of £16,800, over £3,300.