Question to the HM Treasury:

To ask His Majesty's Government what recent assessment they have made of business rates and the case for reform.

The Government recently undertook a full review of the business rates system. The Final Report of the Business Rates Review was published at Autumn Budget 2021. The report reaffirmed the importance of business rates as part of the UK tax system, particularly as they raise around £20 billion a year to fund vital local services. As part of this Review the Government committed to more frequent revaluations from 2023, a major reform to the system ensuring that business rates liabilities are more responsive to changing market conditions. This addresses a key ask of stakeholders for more frequent revaluations and to reduce the burden of business rates to make the system fairer.

At Autumn Statement 2022, the Government announced a package of changes and tax cuts worth £13.6 billion over the next five years. The package contains new measures to reduce the burden of business rates on firms, including a freeze in the multiplier, extended relief for high street businesses, and a new Exchequer funded Transitional Relief scheme to help ratepayers adapt to their new bills.

The Government keeps all taxes under review.