House of Commons · Urgent Question
19 January 2026 · 39 other contributors
Opened by Mel Stride Con Central Devon
Summarised by AI from the official record, so it can contain mistakes.
Mel Stride raised concerns about business rates retail, hospitality and leisure 2026-01-19 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm that the planned changes to business rates for the retail, hospitality and leisure sectors will not result in crippling rises? Given the significant negative impact these changes could have on local businesses, can the Government provide further details about transitional support measures and clarify which sectors will receive additional relief?
Question
Why did the Minister say this was a complete non-response? Why didn't they check the impacts before announcing them, and can the Minister clarify when specific data on revaluation increases were provided to Ministers?
Minister reply
The Government acknowledges the need for reform but criticises the previous government's approach. The process of valuation changes was set by the previous government; these are not new measures introduced without consideration.
Question
With many pubs seeing eye-watering increases in business rates, can the Government provide plans for medium to long-term reform of business rates?
Minister reply
The Budget introduced significant reforms with a divergence in tax rates paid by high street businesses versus larger ones. The reduction is around £1 billion and benefits RHL businesses.
Question
Why did the Government set an expectation of 20p discount but only implement a 5p reduction? Will they apologise to small businesses for raising expectations, and how many new business premises will now pay rates?
Minister reply
The legislation allowed up to 20p but did not set an expectation; it was a choice based on reform. Detailed data is available online. The Government does not accept lectures from Liberal Democrats on VAT given their past actions.
Question
Some of my publicans are facing a threefold increase in rates. They have seen speculation that the Treasury has briefed out to newspapers but they are still waiting. They do not have long to wait before they have to pay these increased bills, so can the Minister give some indication of when there will be clarity?
Minister reply
It is important to be clear that no pub will see their business rates bill go up by three times this year. Bills may be higher due to the increase in valuations, but the Government have capped increases at £800 or 5%, 15% or 30%, depending on the property size.
Question
I welcome noises from the Department about additional support for pubs, but this is not just about pubs; it is about all hospitality businesses, including music venues and service-based industries. These businesses have limited opportunities to claim back VAT as labour is their highest cost. When the Government consider additional support measures for hospitality, please can they ensure that all businesses are included?
Minister reply
Hospitality businesses are the cornerstone of our communities. The Government are committed to supporting their growth and success. We value the work of employees in this sector and seek to grow these businesses. Precisely because we value their work, we redesigned the transitional relief scheme to provide a 40% reduction in bills.
Question
The November Red Book stated that the high street will benefit from permanently lower business rates for retail, hospitality and leisure. Businesses up and down the land think this was misleading. Can the Minister tell them when relief will be on its way?
Minister reply
Changes at the Budget led to a reduction in tax rate paid by businesses on the high street due to reforms brought in by this Government. We have capped increases significantly over the coming three years, providing £4 billion of support.
Question
My hon. Friend is absolutely right to say that the Opposition have no credibility on this issue. None the less, it is true that many pubs are really concerned and under the impression that further help will come. Can he say any more about whether their bills will be exactly what they are expecting right now or whether further help will come before April?
Minister reply
I am grateful to my hon. Friend for making this important point. The last Government had no plans to continue extending the pandemic support. As for his other question, I will not comment today on speculation.
Question
In its manifesto Labour committed itself to reforming the business rates system, and the Red Book referred to permanently lower business rates for retail, hospitality and leisure. That will have given business owners the impression that their bills would be lower. Why has this backlash taken them by surprise?
Minister reply
We were aware that a revaluation initiated by the last Government was taking place in 2024 and would be in place from April of that year. We knew it would not be appropriate to retain full pandemic relief almost ten years after the height of the pandemic.
Question
Pubs have a powerful lobby, unlike independents on our high streets such as cafés and retail outlets. Some little retail outlets in York are seeing their business rates rise by 93%. What will the Minister do for independents to ensure that they survive past March this year?
Minister reply
We are taking steps to support high street businesses through a £4.3 billion package of support, and we will continue engaging with Members and businesses on further steps.
Question
The Minister is talking in numbers, but out there on the doorsteps, I have met a café owner and a publican whose businesses are busier than ever—but their top line is shrinking because of this Government’s policies. One landlady was in tears as she spoke to me about whether she should carry on directly because of these Government's policies. What advice would the Minister give her?
Minister reply
I hope that when the hon. Member was conversing with businesses in his constituency, he explained that this year, if a pub has a rateable value of less than £100,000, the policy will cap increases at 15%. It is important for Members to do all they can to help business owners understand the complexities of the business rates system.
Question
The hospitality and leisure sector in Liverpool contributes significantly to the local economy. However, it faces significant challenges with the average hospitality business facing an increase of more than £48,000 over the next three years—double the national average, a serious threat to sustainability. What targeted support will be provided to safeguard jobs and prevent closures and redundancies in this sector?
Minister reply
The Government are taking steps to support high street businesses through our package of £4.3 billion of support, and we will continue engaging with Members and businesses on further steps.
Question
Given that around 7,000 pubs and bars closed on the Conservative watch, will the Minister continue to engage with the hospitality sector, UKHospitality, and small businesses to ensure support is adequate?
Minister reply
Yes, the Government will continue engaging with such sectors. The Exchequer Secretary thanked Chris Webb for his engagement and noted ongoing efforts to protect institutions vital for community life.
Question
May I invite the Minister to visit Shropshire's pubs, which are often at the heart of village communities, serving as meeting places and essential social hubs?
Minister reply
While not committing to a specific visit, the Exchequer Secretary acknowledged the importance of pubs in communities and offered to bring him a pint outside when warmer weather arrives.
Question
Does the Minister accept that pubs are anchor employers on high streets, and will he ask the Chancellor to expedite a package of rates relief and duty reduction aimed at sustaining these jobs in hospitality?
Minister reply
The Exchequer Secretary agreed strongly with Antoniazzi's point about pubs as important institutions, reiterating the Government’s commitment to supporting publicans and hospitality businesses across the country.
Question
When will the Minister provide clarity on business rates changes amid the current uncertainty and increased costs for pubs, many of which are reducing opening hours?
Minister reply
The Exchequer Secretary defended the Government's position, noting previous chaos under the previous government and emphasising that the Conservatives had 14 years to implement significant reforms but did not.
Question
While pubs understand the help available, what specific support can they look forward to in the next three years given the high business rates increases?
Minister reply
The Exchequer Secretary acknowledged the need for clarity and committed to significant reforms announced at Budget, including £4.3 billion of support over the coming three years.
Question
With additional employment costs on small businesses, sky-high energy costs, and now massive increases in business rates, what can give hope to these struggling high street enterprises?
Minister reply
The Exchequer Secretary emphasised the Government's commitment to supporting small businesses through reforms such as a permanently lower multiplier for high street businesses and significant support worth £4.3 billion over three years.
Question
Are there any planned changes to business rates for libraries and community centres, which are central to communities like hers in Lewisham East?
Minister reply
The Exchequer Secretary confirmed reforms at Budget will protect businesses seeing large increases in rateable values. He offered further conversations on additional support measures.
Question
Can the Minister give assurances that we need to sort out the revaluation shambles and consider a differential rate of VAT as seen in other countries?
Minister reply
I join my hon. Friend in congratulating the brewery in her constituency. This Government are committed to supporting businesses such as those mentioned, ensuring people have more money for spending, as announced at the Budget.
Question
Is the Minister aware of grassroots music venues facing demands for thousands of pounds and will they be included in any relief?
Minister reply
We have set out a supporting small business relief scheme at the Budget to cap increases at £800 for businesses coming into rates for the first time.
Question
Is the Minister considering live performance venues, not just pubs, in his thinking about changes?
Minister reply
My hon. Friend is right to raise the importance of live performance venues that support our economy directly and more broadly.
Question
Have there been efforts to sit down with Scottish Government Ministers to discuss a national strategy on how we can help businesses throughout the United Kingdom?
Minister reply
I am in conversation with Governments in Scotland and Wales about changes to taxation policy as announced at the Budget.
Question
Will the Minister join the campaign to save local cafés on Hampstead Heath and reassure constituents that protecting small businesses is at the heart of Government policy?
Minister reply
I look forward to talking more with my hon. Friend about her constituency issues.
Question
Can the Minister assure us that there is a U-turn coming on this policy due to increased taxes, energy prices and regulation?
Minister reply
While some businesses will see increases in their bills, more than half of rate payers’ bills will either remain flat or fall next year.
Question
Does the Minister agree that it is time to show hospitality and leisure businesses the same level of support as other sectors?
Minister reply
We are giving more support to small high street businesses than to the largest ones, with a 25% lower tax rate for the smallest.
Question
Can the Minister assure us that if there is further money for support it will be ringfenced and not given to Northern Ireland?
Minister reply
A third of properties pay no business rates at all, as they receive 100% small business rate relief.
Question
What steps is the Minister taking to support jobs in the hospitality sector?
Minister reply
The Government provided significant support for hospitality businesses at the Budget, and I will continue engaging with Members on supporting our high streets.
Question
When will the Minister commit to meaningful reform and action including giving local authorities greater powers?
Minister reply
I am happy to receive correspondence from the hon. Member on changes that can give councils more powers.
Question
When will reform be coming and how will businesses receive support in the interim?
Minister reply
The Chancellor announced a package of support at the Budget to help hospitality businesses. I look forward to discussing more with my hon. Friend about supporting local businesses.
Question
The tables show that median rateable values for pubs are increasing by a third. Given this, when we have an inevitable U-turn, will he ensure it delivers lower business rates not just in his constituency but across the country?
Minister reply
I thank the hon. Member for giving me a chance to talk about the Prince of Wales in my constituency. Some pubs are seeing increases in their rateable values as a result of the unwind from the pandemic, which is precisely why we have come forward with support, capping the increases in business rates bills this year and in subsequent years.
Question
Can I confirm that all business rates, including those on high streets, will be reviewed so we can have a proper level playing field with out-of-town institutions?
Minister reply
It is really important to level the playing field for high street businesses in Stroud and other areas. That is why we implemented reforms at the Budget to rebalance the system through a lower tax rate on high street businesses and a higher one on those that can afford it.
Question
Does the Minister understand how damaging rising business rates are for small independent shops, and will he set out a timeline for when these businesses can expect to receive support?
Minister reply
One of the challenges is that questions suggest the Government should not have gone ahead with the post-pandemic revaluations. Those were set in train by the previous Government. Of course there will be businesses that see increases in their rateable values, and that is precisely why we stepped in with £4.3 billion of transitional support at the Budget last year.
Question
Will the Minister meet me and sector representatives to understand better the issues faced by grassroots music venues, which are often valued as pubs?
Minister reply
I thank my hon. Friend for raising this issue. Many grassroots music venues are valued as pubs. We must provide support to them and other businesses. That is why the Government stepped in with £4.3 billion of transitional protection.
Question
Why did Ministers proceed with decisions that had known adverse impacts on business rates, despite warnings from the valuation office?
Minister reply
I am glad the hon. Member was able to ask a similar question as the shadow Chancellor. I will not comment on the policymaking process in the run-up to the Budget.
Question
Can the Minister reassure businesses worried about future business rates bills and outline transitional support we are putting in place, both short-term and long-term?
Minister reply
I thank my hon. Friend for her question and her representation of small businesses in Bournemouth. We have implemented reforms to rebalance business rates away from high streets towards online giants.
Question
Will the Minister accept that there is no more money to squeeze out of pubs on the brink of financial catastrophe due to recent Government decisions?
Minister reply
This Government understands pressures facing hospitality businesses. One pressure relates to higher energy bills under the previous Government, which made it difficult for small businesses.
Question
What message would he give cafés and small hospitality businesses concerned about both future and current business rates?
Minister reply
We are making sure we bring back economic stability to the country, with six interest rate cuts that will reduce borrowing costs. Wages went up faster in the first year of this Government than they did under the previous one.
Question
Can the Minister alleviate fears about business rates, especially for those already dealing with rising wage and energy costs?
Minister reply
We want to provide stability in our taxation system. We are focusing on getting Government borrowing down faster than any other G7 economy. When it comes to business rates, reforms will rebalance the system to provide a permanently lower tax rate for small high street businesses.
Government Response
The Government announced comprehensive reforms to business rates at the Budget. The new system introduces permanently lower multipliers for retail, hospitality, and leisure businesses, funded by higher taxes on larger properties. Over 750,000 RHL businesses will benefit from a tax rate that is 25% lower than those with larger properties, supported by £4.3 billion in transitional funding over three years. Half of ratepayers will see their bills flat or falling next year; around a third pay no rates due to small business relief. The Government acknowledges the need for reform but criticises the previous government's approach and impact on high streets.