Commons Sense

House of Commons · Ministers' Questions

Support for Businesses

Tuesday 27 January 2026 · 8 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 7 Not answered 0

Key points

  • Government introduced a 4.3 billion support package for businesses affected by increasing business rates.
  • The package includes an additional two years of small business rate relief for expanding properties.
  • The government implemented differential multipliers for larger businesses to ensure smaller high street businesses pay less.

Topics (select to filter)

Questions & Answers

Q1 Richard Foord Lib Dem Honiton and Sidmouth
Economy Business & Trade Local Government
Context

Joanna Watson, who runs hotels in Sidmouth, faces a 20% rise in her business rate costs despite the Government legislating for a reduction in the business rates multiplier.

Question

The hotelier Joanna Watson is facing a 20% increase in her business rate costs. Despite the government's legislation of a 20p reduction in the business rates multiplier, these bills do not reflect what she earns and stay high year-round despite winter income collapse. Will the Minister consider the plight of hotels such as those in Sidmouth?

Answer from The Exchequer Secretary to the Treasury (Dan Tomlinson)

We have introduced a support package worth £4.3 billion to support rate payers who are seeing increases in their business rates, and we recognise that there are concerns as to how hotels are valued for business rates. The statement later will address these issues.

Partly answered

How: Will Not Pre-Empt The Announcements

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Q2 Paula Barker Lab Liverpool Wavertree
Taxation Business & Trade
Context

Aura salon, owned by Victoria and Janet in Liverpool Wavertree, is facing significant business rates and VAT challenges.

Question

Victoria and Janet at the Aura salon have invested heavily in their business but now face crippling business rates and VAT. Their VAT rate does not allow them to take on apprentices as they cannot afford it. Will the Minister advise what can be done to help salons like Aura and consider an affordable apprenticeship scheme for the hairdressing sector?

Answer from The Exchequer Secretary to the Treasury (Dan Tomlinson)

VAT is a broad-based tax that raises £180 billion annually. We will consider tax changes in relation to VAT and salons based on differential treatment depending on how they set themselves up, but it will be addressed through future Budgets.

Partly answered

How: Will Consider Tax Changes At Future Budgets

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Q3 John Whittingdale Con Maldon
Economy Business & Trade
Context

The Ship Inn and Peaberries in Burnham-on-Crouch face existential threats due to business rates.

Question

Both the Ship Inn, which has hotel rooms, and Peaberries on the high street are looking at significant business rate increases threatening their existence. Will the Minister say whether the package announced later will benefit them?

Answer from The Exchequer Secretary to the Treasury (Dan Tomlinson)

I do not think it would be wise to pre-empt the announcements later, but I can reiterate that at the Budget we implemented differential multipliers for larger businesses paying more than smaller high street businesses.

Not addressed: Whether the package will help Ship Inn and Peaberries

How: Will Not Pre-Empt Announcements

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Q4 Olly Glover Lib Dem Didcot and Wantage
Taxation Business & Trade
Context

The chief executive of the Valuation Office Agency warned that over 5,000 pubs would see their business rates double ahead of the Budget.

Question

With over 5,000 pubs seeing their business rates double due to revaluations as warned by the VOA, why did the Government press on and create such uncertainty for our hospitality sector in the Budget?

Answer from The Exchequer Secretary to the Treasury (Dan Tomlinson)

We knew revaluations would be implemented from 1 April, so we introduced a significant package of support for all businesses across the economy. We have lowered multipliers for businesses like pubs that were mentioned.

Partly answered

Not addressed: Why the decision was made causing uncertainty

How: Reiterated Support Package

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Q5 Abtisam Mohamed Lab Sheffield Central
Housing Business & Trade
Context

Businesses in Sheffield like the Gamers Guide Café and Dove and Rainbow pub are facing pressures due to increasing running costs and a drop in footfall.

Question

With ever-increasing running costs and a decline in foot traffic, how is the Minister reducing pressures on high street cafés and pubs? Will targeted relief be considered to ensure viability for hospitality businesses?

Answer from The Exchequer Secretary to the Treasury (Dan Tomlinson)

One in three businesses benefit from small business rate relief, with an additional 85,000 benefiting from reduced bills as it tapers. We introduced two more years of small business rate relief for expanding properties, supporting independent growth.

Partly answered

How: Reiterated Support Package

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Q6 Marie Goldman Lib Dem Chelmsford
Economy Taxation Business & Trade
Context

Music venue Hot Box in Chelmsford faces significant business rate increases over three years, putting its future at risk.

Question

Hot Box, a local music venue, is facing an average increase of nearly £23,000 in hospitality business rates over three years. Another family-run business will see their monthly rates more than double from April, resulting in potential job losses. Will the Government implement the 20p discount and provide support for businesses in retail, leisure, and hospitality?

Answer from The Exchequer Secretary to the Treasury (Dan Tomlinson)

We have introduced a support package worth £4.3 billion, including an additional two years of small business rate relief for expanding properties, supporting independent growth and viability.

Partly answered

How: Reiterated Existing Support Measures

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Q7 James Wild Con North West Norfolk
Taxation Business & Trade
Context

Two months after the Budget announcement, businesses in the hospitality sector are facing significant financial difficulties due to an increase in their business rates. The Conservative government had promised tax relief but is now seen as failing these businesses.

Question

The Chancellor promised hospitality firms that she would lower their taxes, but her business rate raid is hammering every town, village, city and high street. This is not just an attack on pubs; hotels, cafés, music venues and many more are being hit. It is two months since the Budget caused huge worry for these businesses, and we await details of this latest U-turn, but the key question is: does the Chancellor get it? Does she get that it is not just pubs but hospitality, leisure and retail businesses that need support because of her terrible choices?

Answer from Dan Tomlinson

Conservative Members do not get it, because when they were in government, they set out plans to remove the temporary pandemic rates relief overnight in 2025. That would have seen an increase of 300% in business rate bills overnight for businesses on the high street. We have taken a different, fairer and more proportional approach, phasing out the pandemic relief over a slower time period and extending it into this year.

Partly answered

Not addressed: The specifics of the Chancellor's understanding of hospitality and leisure business impacts were not directly addressed. The answer shifted focus to past Conservative policies.

How: Changing Subject

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Q8 Daisy Cooper Lib Dem St Albans
Economy Business & Trade
Context

Businesses in the hospitality and leisure sectors have been expecting a full 20p discount on their business rate multiplier, but recent changes to business rates are causing significant concern. These businesses had made investment decisions based on these expectations.

Question

We know that pubs have been badly hit by these business rates changes, but businesses right across retail, hospitality and leisure have made investment and hiring decisions based on the expectation raised by this Government that they would get a full 20p discount on their business rate multiplier. Those businesses—music venues, restaurants, soft play centres and hotels—are the high street shops that communities most love. Do Ministers accept that anything less than the full 20p discount for retail, hospitality and leisure will leave the three-to-five-year business plans of those high street businesses in total disarray?

Answer from Dan Tomlinson

We announced a 5p reduction in the multiplier on top of the 7p or thereabouts reduction that was taking place as a result of the revaluation more broadly. That is a £900 million transfer of underlying rates liability away from the smallest high street businesses towards the online giants and the largest properties. When the Liberal Democrats and the Conservatives had the chance, they kept the tax rates the same. We have introduced significant reform, and we started the work of that reform at the Budget. Of course we will continue our conversations in the months ahead.

Partly answered

Not addressed: The specific impact on business plans was not directly addressed; instead, focus was placed on the overall reduction announced by the government.

How: Changing Subject

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