Question to the HM Treasury:

To ask His Majesty's Government whether they plan to exempt hospitality businesses from the business rates surcharge as part of a review of support for high street sectors.

We are creating a fairer business rates system that protects the high street and supports investment.

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. This permanent tax cut will ensure that RHL businesses benefit from much-needed certainty and support.

This tax cut must be sustainably funded, and so we intend to apply a higher multiplier from 2026-27 on the most valuable properties - those with rateable values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. The final design of the new higher multiplier, including the rate, will be set at Budget 2025.