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Written question asked by Sarah Olney (Liberal Democrat) on Thursday, 4 December 2025, in the House of Commons. It was due for an answer on Monday, 8 December 2025. It was answered by Dan Tomlinson (Labour) on Thursday, 11 December 2025 on behalf of the Treasury.

Retail Trade: Business Rates

Question

To ask the Chancellor of the Exchequer, whether it is her policy to use the business rates system to help support high street businesses in the context of their competition with online retailers.

Answer

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.

Secondary information

Type
Written question
Reference
97280
Session
2024-26
Grouped for answer
Yes
Subjects
Business rates Retail trade Urban areas Home shopping
Link
View this Written question on www.parliament.uk