Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether it remains the Government’s policy to reform the business rates system to level the playing field between bricks and mortar businesses and large online businesses.

The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.

Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The Government is paying for lower tax rates for RHL through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.