Commons Sense

House of Commons · Ministers' Questions

Business Rates

Tuesday 23 June 2026 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 3 Not answered 0

Key points

  • Claire Young questioned the fairness of the business rates system based on turnover rather than profit.
  • The Treasury responded by highlighting the stability of corporate tax and the introduction of the great British summer savings scheme.
  • Neil Duncan-Jordan inquired about modelling numbers to cut business rates for pubs, clubs, and music venues by 20%.
  • The Treasury confirmed action has already been taken to cut business rates for pubs, bars, and live music venues by 15%.

Topics (select to filter)

Questions & Answers

Q1 Claire Young Lib Dem Thornbury and Yate
Taxation Business & Trade
Context

Business owners in Chipping Sodbury have complained that the business rates system is unfair as it is based on turnover, not profit. The Exchequer Secretary previously promised to consider these points ahead of future Budgets.

Question

When I met Chipping Sodbury chamber of commerce recently, business owners told me that the business rates system is broken and unfair, in part because it is based on turnover, not profit. Does he now accept that the business rates system is broken, and that rather than being reformed it should be abolished and replaced with a fairer system?

Answer from Dan Tomlinson

We have a tax on profits in the UK, which is corporation tax. In our corporate tax road map, we have committed to keeping that stable in this Parliament, rather than having it jump around as it did in the last one. I do not think it would be right to change business rates from being set according to property rents.

Partly answered

Not addressed: The issue of abolishing and replacing the business rates system was not addressed, only the stability of corporation tax and current setting method for business rates were discussed.

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Q2 Claire Young Lib Dem Thornbury and Yate
Taxation Business & Trade
Context

Coastal towns like Poole rely heavily on small businesses which contribute to the local economy and character. Recent polls show public support for higher levies on big tech companies.

Question

Could this be a way to raise revenue to cut business rates and support bricks-and-mortar shops that give life to our high streets?

Answer from Dan Tomlinson

The Chancellor announced the great British summer savings scheme which will run until 1 September. On online giants dodging VAT, we are looking at further ways to raise more revenue by going after those companies. In the last Budget, multipliers in the business rates system were changed so that small high street businesses would pay a lower tax rate than large properties.

Partly answered

Not addressed: The specific proposal on levies on big tech was not directly addressed; instead, alternative measures to support small businesses and raise revenue were mentioned.

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Q3 Neil Duncan-Jordan Lab Poole
Business & Trade
Context

A newly elected Member of Parliament pledged to cut business rates for certain venues by 20% if they became Prime Minister. The question challenges the Treasury on preparing models or plans to deliver on this promise.

Question

Given that the hon. Member is facing near certainty of becoming Prime Minister, has the Treasury started modelling numbers to cut business rates for pubs, clubs and music venues by 20%, and if not, when will work begin?

Answer from Dan Tomlinson

We have already taken action by cutting business rates for pubs, bars and live music venues by 15%, showing support for those hospitality venues.

Partly answered

Not addressed: The question asked about modelling a 20% cut but the answer only confirmed a previous 15% reduction without addressing plans or models for further cuts.

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Q4 Daisy Cooper Lib Dem St Albans
Economy Business & Trade
Context

The business rates system is criticized for being based on turnover, not profit, which disproportionately affects small businesses.

Question

What steps are being taken to reform the business rates system?

Answer from Dan Tomlinson

We have started working on reforming the business rates system, including permanently lowering multipliers for high street businesses. We will also consult on collecting more VAT from online sellers to improve the business rates system.

Answered
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