Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the policy paper entitled Transforming Business Rates: Interim Report, updated 17 September 2025, whether the proposed reforms on moving from a slab to slice system will be implemented for the introduction of the new surcharge for hereditaments over £500,000 Rateable Value.

The Transforming Business Rates: Interim Report, published on 11 September, sets out the Government’s next steps to deliver a fairer business rates system. The Interim Report brings together extensive feedback from a broad range of stakeholders and outlines the Government’s next steps to delivery a fairer business rates system, that supports investment and is fit for the 21^st century.

Stakeholders told us that the business rates system can discourage expansion into bigger properties. The Government will explore the case to move to a marginal tax rate, similar to income tax, to support investment and expansion.

The Government will provide a further update at the Budget. Transforming the business rates system is a multi-year process. The Government will consider reforms beyond Budget 2025, and any reforms taken forward will be phased over the course of the Parliament.