Question to the HM Treasury:

To ask His Majesty's Government what estimate they have made of the average percentage increase in business rates payable by hospitality properties from April 2026 onwards, set out in Budget 2025, published on 28 November.

At the Budget, the VOA announced updated property values from the 2026 revaluation. Some properties, including in the retail, hospitality and leisure sectors, have seen their rateable values increased. This is in part because the last revaluation updated rateable values to align with market values on 1 April 2021 – during the CVOID pandemic. This meant rateable values were lower due to the atypical economic situation the pandemic created. This latest revaluation reflects a post Covid world, which has led to significant increases in rateable values for some properties.

To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, 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. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid.

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.