Commons Sense

House of Commons · Ministers' Questions

Business Rates: High Street Retailers

Tuesday 3 December 2024 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 3 Not answered 0

Key points

  • Ministerial intentions include introducing permanently lower tax rates for high street retail, hospitality, and leisure properties from April 2026.
  • The Government plans to introduce a higher rate on properties with a rateable value of 500,000 or more to sustainably fund the tax cut.
  • The Government aims to roll out 100 banking hubs across the country by the end of the year to ensure access to cash and banking services in communities.

Topics (select to filter)

Questions & Answers

Q1 Jade Botterill Lab Ossett and Denby Dale
Business & Trade
Context

The question arises from the need to support high street retail businesses facing financial challenges.

Question

What steps she is taking to introduce permanent reductions to business rates for high street retailers. The Non-Domestic Rating (Multipliers and Private Schools) Bill will deliver these changes in April 2026, but what measures are being taken now?

Answer from James Murray

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for high street retail, hospitality and leisure properties from 2026-27. This tax cut must be sustainably funded, so we intend to introduce a higher rate on the most valuable properties—those with a rateable value of £500,000 or above—from 2026-27.

Answered
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Q2 Jonathan Hinder Lab Pendle and Clitheroe
Economy Business & Trade
Context

The question stems from the concern about high street businesses being displaced by online retailers due to unfair tax burdens.

Question

High streets in my Pendle and Clitheroe constituency were hollowed out under the last Conservative Government, with many shops left empty. Small, independent businesses are the backbone of our local economy, employing local people, keeping our towns vibrant and giving them their character and charm. Can the Minister assure me that multinational giants will pay their fair share under Labour, levelling the playing field and enabling our high streets to thrive?

Answer from James Murray

My hon. Friend is absolutely right about the importance of small, independent businesses in his constituency, and I am sure his sentiment is shared by Members across the House. Through our reforms, we are setting out to make sure that those properties with a rateable value of £500,000 or more pay so we can have a permanent tax cut for high street business.

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Q3 Connor Naismith Lab Crewe and Nantwich
Business & Trade
Context

The question addresses the financial challenges faced by local independent businesses due to business rates.

Question

Ahead of Small Business Saturday, I congratulate St Martha Greek taverna in Nantwich on being the first winner of my Crewe and Nantwich small business of the month competition. Small businesses on our high streets, such as St Martha, regularly highlight business rates as a significant challenge, so what steps is the Minister taking to ensure that they can continue to thrive?

Answer from James Murray

May I extend my congratulations to St Martha Greek taverna in Nantwich? Given the time, I am feeling a bit hungry now that we are talking about food. I reassure my hon. Friend that our plans to reform the business rates system would see a permanent tax cut for retail, hospitality and leisure businesses.

Partly answered

Not addressed: The answer did not provide specific details on St Martha's rateable value or eligibility for support.

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Q4 Jade Botterill Lab Ossett and Denby Dale
Context

The question is prompted by the lack of physical banking facilities in certain communities.

Question

Many people in my community rely on in-person banking and access to cash. I was pleased to recently open the banking hub in Ossett town centre. Ossett was previously one of the 55 bankless towns in the UK. How are the Government looking to further support those who rely on those services, particularly in towns and rural villages?

Answer from James Murray

My hon. Friend is right to highlight the importance to communities of having access to cash and banking services, which is why we have committed to rolling out more banking hubs across the country—100 by the end of this year and a total of 350 through our commitment.

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Q5 Sammy Wilson DUP East Antrim
Economy Taxation Business & Trade
Context

The question addresses the financial burden placed on small businesses due to increased taxes and business rates.

Question

The heavy burden of business rates and the national insurance contributions that the Government are going to impose on small businesses is taxing businesses to death. Does the Minister recognise that in doing so, he is going to cause unemployment, higher inflation and lower growth, and that we are heading for higher taxes in future because of the downward economic spiral?

Answer from James Murray

As the right hon. Gentleman will see in the National Insurance Contributions (Secondary Class 1 Contributions) Bill that we will be debating this afternoon, we have doubled the employment allowance to help small businesses to employ up to four people earning the national living wage without paying a penny in national insurance.

Partly answered

Not addressed: The answer did not address the negative impacts on employment and local economies.

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Q6 Gideon Amos Lib Dem Taunton and Wellington
Taxation Business & Trade
Context

The question is prompted by the financial strain on high street businesses due to increased taxes.

Question

Businesses like Mr Miles in Taunton High Street are being hit hard by the changes in taxes for hospitality businesses, including the increase in the wage bill and national insurance contributions, and the massive increase in business rates. That business is now considering reducing its opening hours, which would make our high street less vibrant than it should be. One challenge is the £50,000 rateable value limit for the discount, as many high street premises have a rateable value of more than £50,000. Will the Chancellor consider reviewing the limit placed on the business rates discount for small businesses?

Answer from James Murray

As the hon. Gentleman will know, we set out our plans for reforming business rates to ensure that retail, hospitality and leisure properties on the high street with rateable values below £500,000 will benefit from a permanent tax cut from this Government.

Partly answered

Not addressed: The answer did not address reviewing the current discount limit of £50,000.

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