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Business Rates 2026-01-27
27 January 2026
Lead MP
Dan Tomlinson
Debate Type
General Debate
Tags
EconomyTaxation
Other Contributors: 56
At a Glance
Dan Tomlinson raised concerns about business rates 2026-01-27 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The Government is taking steps to protect high street businesses from upward-only rent review clauses, introducing a strong new community right to buy to safeguard valued community assets. They are also investing in local communities through the £5 billion Pride in Place programme and pushing ahead with high street rental auctions to bring long-term empty shops back into use. The Government is extending small business rates relief for another two years and implementing permanently lower multipliers for eligible retail, hospitality and leisure properties. Additionally, they are providing support for pubs by offering a 15% discount on new bills and freezing rates in real terms for two more years.
Dan Tomlinson
Exchequer Secretary to the Treasury
Con
The Government is implementing reforms to business rates, including permanently lower multipliers for retail, hospitality, and leisure properties. They are also introducing transitional support packages for those with large increases in rateable values after the pandemic, capping bill increases at 15% or less. The Government will review pub valuation methodology due to concerns from the sector. Support is being provided for pubs through a 15% discount on new bills and real-term freezes for two more years.
Mel Stride
Con
Central Devon
The Conservative Government's response is inadequate for the challenges facing local businesses. The proposed relief will only delay pain for some while bills increase dramatically; pubs face bills more than 70% higher and hotels over 100%. Labour has promised to replace the business rates system, which would level the playing field for high streets and support entrepreneurship.
Dan Tomlinson
Con
Dewsbury
The Conservative Government will review the valuation methodology for pubs and hotels this year, aiming to conclude before the next revaluation in 2029. The £4.3 billion business rates support package from last year's Budget aims at rebalancing taxes on large businesses compared to typical high street businesses.
Meg Hillier
Lab/Co-op
Hackney South and Shoreditch
Welcomes the Minister’s engagement and willingness to speak to the Treasury Committee. Asks for a clear timeframe for significant changes in business rates methodology and valuation procedures, highlighting the need for certainty for businesses planning.
Daisy Cooper
LD
St Albans
Liberal Democrats have warned since the first Budget that high streets were at risk without making various changes over the past 18 months. Urges the Government to see these measures as just a start for saving the high street.
Dan Tomlinson
Lab
Dartford
Welcomed the Government's package for pubs, noting that around 75% of pubs will see their bills either stay the same or fall. Acknowledged concerns about larger pubs and committed to a review of valuation methodology.
Jim Dickson
Lab
Dartford
Asked if the package announced would help protect pubs as community centres, noting that the 15% reduction on revalued bills and protection for three years makes a significant contribution to this goal.
Harriett Baldwin
Con
West Worcestershire
Asked why pubs and music venues were singled out, pointing out that businesses on high streets will be treated differently. Noted the complications arising from differential treatment of similar businesses.
Florence Eshalomi
Lab/Co-op
Vauxhall and Camberwell Green
Asked for additional support for hotels, noting their significant contribution to local economies and employment. Invited the Minister to visit a hotel in her constituency for further discussion.
John Glen
Con
Salisbury
Reminded the Minister that the Valuation Office Agency had provided clear data on the impact of rate rises, questioning whether the Treasury was fully informed before implementing changes. Criticised the Government's lack of foresight in addressing pub concerns.
Samantha Niblett
Lab
South Derbyshire
Shared feedback from a landlady about working hours and competition with supermarket prices for alcohol. Suggested measures to address packaging costs, advocating for reuse of existing crates by breweries.
Dan Tomlinson
Con
Minister provided details on the Government's high street strategy and efforts to tackle high energy prices. He emphasised the importance of long-term investment in clean and green power, as well as steps taken to reduce business rates and taxes for businesses.
Lizzi Collinge
Lab
Morecambe and Lunesdale
Ms. Collinge welcomed today's announcement but questioned how the strategy would work with businesses and their representatives, such as the Morecambe business improvement district or Sedbergh economic partnership.
Gavin Williamson
Con
Stone, Great Wyrley and Penkridge
The Member criticised the statement from the Minister, noting that it ignored the significant increase in business rates for some pubs and did not address issues faced by high street retailers.
Jim McMahon
Lab/Co-op
Oldham West, Chadderton and Royton
Mr. McMahon supported the Government's package for pubs but urged them to include a wider support package for the whole of hospitality, citing examples of businesses in his constituency facing significant pressures.
Sarah Olney
LD
Richmond Park
Ms. Olney questioned why the relief was focused only on pubs and called for better business rates relief for other types of businesses struggling with rate hikes.
Stella Creasy
Lab/Co-op
Walthamstow
Ms. Creasy welcomed support for pubs but argued that the Government should provide further support to smaller independent venues such as cafés and community centres, highlighting their importance in community life.
Mark Pritchard
Con
The Wrekin
Mr. Pritchard criticised the statement from the Minister, noting that it was too little, too late for many pubs in Shropshire and called for a forward timetable to help businesses plan their futures.
Andy MacNae
Lab
Rossendale and Darwen
Mr. MacNae thanked the Minister for his positive engagement and willingness to listen, emphasising that fundamental reform of business rates was needed.
Lisa Smart
LD
Hazel Grove
Ms. Smart highlighted concerns from William Robinson, managing director of Robinsons Brewery, about repeated changes in the system causing uncertainty for businesses making investment decisions.
Clive Betts
Lab
Sheffield South East
Welcomed changes for pubs and music venues but questioned the treatment of Sheffield Arena and Handsworth Junior Sporting Club's significant increase in business rates.
Dave Doogan
SNP
Angus and Perthshire Glens
Asked if the budget will increase due to new money, leading to Barnett consequentials for devolved nations. The Minister confirmed that details would be set out as part of the usual process.
Suffolk Coastal
Thanked the Minister and other advocates, welcomed today’s announcement but called for more measures including lowering VAT for hospitality and alcohol duty.
Sarah Bool
Con
South Northamptonshire
Called on Labour to adopt the Conservative plan of scrapping business rates on high streets in response to struggles faced by them. The Minister dismissed this as unrealistic.
Alex Sobel
Lab/Co-op
Leeds Central and Headingley
Asked if support for music venues extends to multi-use venues such as the City Varieties music hall in Leeds, and questioned whether studios are also included. The Minister invited him to check the guidance.
Adam Dance
LD
Yeovil
Expressed concern over hotels’ uncertainty despite rateable value review announcement; requested help for rural hotels struggling now. The Minister outlined a £2 billion package of support this year and £4 billion over three years.
Chris Curtis
Lab
Milton Keynes North
Invited the Minister to discuss with him about heritage businesses facing viability issues post business rates revaluation. The Minister welcomed meeting opportunities.
Mike Wood
Con
Kingswinford and South Staffordshire
Critiqued the U-turn as insufficient, delivering temporary relief without permanently lower bills for most hospitality firms. Suggested incompetence of Government in executing even these changes properly.
Alex McIntyre
Lab
Gloucester
Asked the Minister to expedite high street strategy for Gloucester's vacant shops and suggested it could turbocharge regional growth; The Minister welcomed working with him on this issue.
Layla Moran
LD
Oxford West and Abingdon
Highlighted perceived unfairness in the announcement timing, citing a local retailer whose business rates have increased significantly while those of large stores decreased. The Minister defended the changes but acknowledged engagement with businesses on further support.
Jonathan Brash
Lab
Hartlepool
Welcomed support for pubs and music venues but expressed concern over local businesses facing double rates this year, suggesting a need to look again at wider support packages.
Martin Vickers
Con
Brigg and Immingham
Requests the Minister to reassure the proprietor of the George Inn in Barton-upon-Humber regarding early relief or future reviews, noting that it is the last hotel in town.
Andrew Pakes
Lab
Peterborough
Asks for reassurance on community sector needs and pubs going into community ownership. The Minister responds by confirming support will cover over 70% of independent and chain pubs, ensuring their bills are flat or falling.
Sammy Wilson
DUP
East Antrim
Welcomes the statement but expresses concern about excluding hotels and restaurants. Inquires about Barnett consequentials for Northern Ireland.
Chris Webb
Lab
Blackpool South
Acknowledges engagement with the Minister on hospitality issues and seeks continued support for music venues like The Bootleg in Blackpool.
Bradley Thomas
Con
Bromsgrove
Critiques Labour’s policies, suggesting they have resulted in higher energy bills and taxes. Calls for broader business rate relief or abolition.
Rachael Maskell
Lab/Co-op
York Central
Raises concerns about York's independent businesses not receiving adequate support under the new measures, urging the Minister to review specific cases in detail.
Helen Morgan
LD
North Shropshire
Highlights the financial struggles of local pubs and asks for a timeline on hotel reviews. The Minister responds by confirming caps on rate increases for hotels based on their value.
Derby North
Welcomes protections for small businesses but seeks assurances that the Government will continue to work with pubs and provide long-term certainty.
Ben Lake
PC
Ceredigion Preseli
Requests assurance on timely communication of consequential funding to Welsh Government to support small businesses in Wales.
Steve Race
Lab
Exeter
Acknowledges the 15% cap and expresses satisfaction with the contrast between current and previous government policies regarding pub closures. The Minister agrees, highlighting reforms aimed at reducing tax rates for high-street businesses compared to online giants.
Dan Tomlinson
Con
Dover
Announces interventions including a 15% reduction in business rates bills for pubs, followed by a real-terms freeze for two years. Acknowledges the significant challenges faced by pubs and confirms a review of their rateable value methodology.
Jack Abbott
Lab/Co-op
Ipswich
Welcomes additional support but raises concerns about the impact on specific local businesses like the Greyhound in Ipswich. Asks for an explanation behind the need to review the business rates process.
Adnan Hussain
Ind
Blackburn
While welcoming the statement, questions why the Government is not providing similar support to other small businesses on the high street, which are struggling due to increased costs and online competition.
Jacob Collier
Lab
Burton and Uttoxeter
Welcomes measures for pubs in Burton and Uttoxeter but calls for further support such as draught relief. Also welcomes the high-street strategy announcement and asks how businesses can contribute to it.
Roz Savage
LD
South Cotswolds
Welcomes today's statement but suggests more needs to be done, citing specific examples of struggling pubs in South Cotswolds. Invites the Minister to discuss further support for these venues.
Lewis Atkinson
Lab
Sunderland Central
Welcomes measures for pubs and live music venues but asks for more details on the methodology used for determining business rates relief for music venues.
Carla Lockhart
DUP
Upper Bann
Raises concerns about Northern Ireland’s approach to revaluing business rates, which could result in significant increases for hotels. Calls for the UK Government to share learning and consider VAT rate reductions for hospitality.
Jonathan Davies
Lab
Mid Derbyshire
Welcomes measures but calls on the Minister to keep music and cultural venues at the forefront of policy thinking, given their economic importance.
Mid Sussex
Asks for clarification on how the definition of a pub is determined, particularly in cases where similar businesses are operating in the same high street area.
Luke Charters
Lab
York Outer
Thanks the Minister for supporting pubs and calls out previous Conservative policies as problematic. Emphasises the need for ongoing support for legendary landlords across Britain.
Henley and Thame
Critiques the Government’s approach to business rates, suggesting it leaves businesses worse off despite the relief offered. Calls for a 5% cut in VAT for hospitality, which is declined by the Minister.
Josh Newbury
Lab
Cannock Chase
Highlights challenges faced by indoor play venues like The Beach Hut and calls on the Minister to meet with industry representatives to discuss potential support measures.
Claire Young
LD
Thornbury and Yate
Welcomes support for pubs but asks what can be done for other struggling leisure businesses in her constituency, such as The Play Shed.
Tom Hayes
Lab
Bournemouth East
Praises the announcement and calls for ongoing engagement between MPs and the Government to ensure long-term support for hospitality businesses. Emphasises the need to put party politics aside in addressing these issues.
Gideon Amos
LD
Taunton and Wellington
Welcomed the change in business rates for pubs but expressed concerns about hotels. Mentioned a family hotel expecting a £250,000 loss due to Government changes in the Budget. Requested a meeting with the Minister, Somerset MPs, and hoteliers to discuss how hotels can be helped through the reforms.
Government Response
The Government is implementing reforms to business rates, including permanently lower multipliers for eligible retail, hospitality and leisure properties. They are also providing transitional support packages for those with large increases in rateable values after the pandemic, capping bill increases at 15% or less. The Government will review pub valuation methodology due to concerns from the sector and is offering a 15% discount on new bills and real-term freezes for two more years. The review of the methodology for pubs will be conducted rapidly this year, concluding before the next revaluation in 2029. The Government's ambition is to rebalance the system through significant changes introduced last year’s Budget. Acknowledged concerns about larger pubs and committed to a review of the business rates methodology. Emphasised that more than half of businesses will see their bills either flat or falling, with transitional relief support for three years. The Minister outlined various measures to tackle high energy prices and support businesses, including business rate relief, tax cuts, and a consultation on extending licensing hours. He also emphasised the importance of long-term investment in clean power. Government announced reforms in the Budget including reduction of business rate multipliers by 5p, transferring nearly £1 billion from high street businesses towards larger online giants. Relief measures for pubs and music venues were also detailed; transitional relief caps implemented capping increases at £800 or 15%/30%. The Government have implemented a 15% cap on business rates increases for most hospitality businesses. Larger hotels may face an increase of up to 30%, while smaller establishments are capped at a lower rate. The Minister also commits to reviewing the methodology and engaging with the hotel industry. Announces a range of measures including a 15% reduction and real-terms freeze on business rates for pubs, commits to reviewing the rateable value methodology, outlines support for businesses via the hospitality support fund, and stresses the importance of supporting cultural assets like music venues. Acknowledged concerns about the methodology used to value hotels and announced that they would review this methodology for the next revaluation. Stated that hotels will benefit from caps put into the system this year.
Shadow Response
None
Shadow Response
The Conservative Government's support for high street businesses, including pubs, is insufficient and temporary. Labour will replace the business rates system to level the playing field and support entrepreneurship and investment in high streets.
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Assessment & feedback
Summary accuracy
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