Commons Sense

House of Commons · Ministers' Questions

Business Rates: Affordability for SMEs

Tuesday 4 November 2025 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Ministers recognize the importance of grassroots music venues in UK constituencies.
  • Reforms to business rates will include permanently lower rates for retail, hospitality, and leisure premises.
  • Support for high streets includes asking larger premises to pay more to reduce rates for smaller businesses.

Topics (select to filter)

Questions & Answers

Q1 Siân Berry Green Brighton Pavilion
Economy Business & Trade
Context

Small businesses in Brighton Pavilion are facing challenges with business rates, particularly grassroots music venues which feel the burden is punitive and threatens their viability. Treasury Ministers have acknowledged that fairer valuation methods for these venues are not currently used.

Question

Grassroots music venues are a vital part of the heart, soul and economy of Brighton Pavilion. Treasury Ministers have admitted that fairer business rates valuation methods are not currently used for many of these businesses—my local venues are calling the burdens punitive and a threat to viability. Will the Chancellor assure me that she will not forget grassroots music venues in her Budget?

Answer from James Murray (Chief Secretary to the Treasury)

We very much recognise the role that grassroots music venues play in constituencies right across our country. In our reforms, on which we will set out more detail at the Budget on 26 November, we will have permanently lower business rates for retail, hospitality and leisure premises, with rateable values below £500,000.

Partly answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Noah Law Lab St Austell and Newquay
Business & Trade
Context

The retail and hospitality sectors, despite contributing only around 9% of the UK’s economic output, pay a disproportionate share of business rates, with contributions amounting to around one-third of all business rates paid.

Question

Despite representing only around 9% of the UK’s economic output, the retail and hospitality sectors contribute around a third of all business rates paid. Does the Minister agree that high streets such as that in St Austell are public goods, and will he ensure that independent small businesses such as those he has described, which are central to our communities and economies, are no longer penalised by an arcane business rates system that undervalues their public contribution?

Answer from James Murray (Chief Secretary to the Treasury)

High streets in St Austell and constituencies right across the country need more support from the business rates system. That is why we are transforming the system to ask larger premises, including the warehouses used by online giants, to pay slightly more in order to cut permanently the business rates payable by smaller premises on high streets across the country.

Partly answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 James Wild Con North West Norfolk
Taxation Business & Trade
Context

The Chancellor imposed £40 billion of tax rises, which led to a doubling of business rates for leisure, retail, and hospital businesses. The questioner suggests scrapping business rates for 250,000 shops, pubs, and restaurants as an alternative.

Question

When the Chancellor imposed £40 billion of tax rises, she chose to double business rates for leisure, retail and hospital businesses—and she is going to come back for more. It may be in vain, but perhaps I can offer her a policy suggestion: scrap business rates for 250,000 shops, pubs and restaurants. Rather than hike taxes, will she adopt Conservative policy and control welfare spending so that we can back our small businesses?

Answer from James Murray (Chief Secretary to the Treasury)

That question barely deserves a response. The business rates relief we inherited from the previous Government when we came into office was due to end entirely in April of this year. It is only because of us that it was extended for a year while we put in place permanently lower multipliers for retail, leisure and hospitality businesses. Those are businesses on high streets right across our country, and that will be announced at the Budget on 26 November.

Partly answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)