High Street Businesses Tax Changes 2026-03-10
2026-03-10
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from concerns about the impact of recent tax changes on high street businesses. Winchester businesses are facing challenges due to tax changes.
What assessment has been made of the potential impact of tax changes on high street businesses in Winchester? Businesses in Winchester are concerned about higher energy costs, national insurance rises, and increased red tape from Brexit. They want growth, not continued red tape.
The Government have announced a support package for all businesses worth £4.3 billion over the next three years. We have introduced permanently lower multipliers for eligible retail, hospitality and leisure businesses, including those on the high street. Every pub and live music venue will get 15% off its new bill from April. A high streets strategy will be brought forward later this year.
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Assessment & feedback
The specific impacts of tax changes on high street businesses were not assessed, only general support measures were provided.
Broad Support Measures
Response accuracy
Q2
Partial Answer
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Context
Youth unemployment in the UK is now higher than in the EU for the first time since records began. The questioner links this issue to business rates and other government policies.
Does the Minister accept that high street businesses struggling with increased rates, jobs tax, and unemployment rights act are contributing to higher youth unemployment in the UK?
One reason we have a challenge with youth participation in the labour market is the broken welfare system and the broken support system that we inherited from the previous Government. The proportion of young adults who are not in education, employment or training is broadly unchanged since the general election. We are reforming our system and providing more support through actions such as our jobs guarantee.
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Assessment & feedback
The specific impact of business rates on youth unemployment was not addressed.
Blaming The Previous Government
Response accuracy
Q3
Partial Answer
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Context
The hospitality industry in North East Fife is struggling despite the area's attractions like St Andrews and the East Neuk. Businesses are facing difficult decisions due to increased business rates.
Why will the Government not consider an emergency VAT cut for hospitality businesses, as proposed by the Liberal Democrats, to help struggling businesses on a UK level?
Business rates are a devolved matter. The changes we have announced and the support we have put in will have consequentials for funding for the Scottish Government. VAT is a broad-based tax that raises a significant amount of revenue for the Treasury. The Liberal Democrats last had the chance to put up VAT rather than cut it.
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Assessment & feedback
The specific VAT cut proposal was not considered.
Referring To Devolved Matters
Historical Criticism
Response accuracy
Q4
Partial Answer
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Context
Businesses in Winchester are concerned about higher energy costs, national insurance rises, and increased red tape from Brexit. They want growth and are supportive of a bespoke customs union.
Why will the Government not assess the economic case for a customs union and why are they clinging to a failed ideology at the expense of growing the economy?
This Government are fully committed to resetting our relationship with the European Union. We are negotiating a sanitary and phytosanitary agreement, looking at electricity and energy, and what more we can do to deepen our trading relationship.
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Assessment & feedback
The specific economic case for a customs union was not assessed.
Changing Subject To Ongoing Negotiations
Response accuracy
Q5
Partial Answer
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Context
Property valuations in York are particularly high, making it difficult for businesses. The questioner asks about the timing of consultations on pubs, hotels, business rates, and high streets.
When will consultations be launched on pubs, hotels, business rates, and high streets? Would the Minister be willing to meet businesses in York to hear why they are struggling?
We will be working across Government on the high streets strategy. Treasury Ministers will be working with colleagues in the Ministry of Housing, Communities and Local Government and the Department for Business and Trade. We will make progress on that in the coming weeks, with the strategy to report by the end of the year. We are in the process of working on the details of plans for the review of the pubs and hotels valuation methodology.
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Assessment & feedback
No specific timeline for consultations was provided.
Broad Commitments
Response accuracy
Q6
Partial Answer
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Context
Other high street businesses in the retail, leisure, and hospitality sectors are struggling. The Federation of Small Businesses suggests increasing the small business rate relief threshold to encourage growth and hiring.
Will the Minister consider increasing the small business rate relief threshold to encourage growth and hiring? Over half the high street small businesses surveyed by the Federation of Small Businesses said they would be in position to invest in or grow their businesses if the threshold were increased.
Around one in three businesses continue to benefit from the small business rates relief and do not pay any business rates at all, with an additional 85,000 benefiting from reduced relief as that is tapered away. At the Budget, we also announced changes to small business rates relief so that we can provide an additional two years of support for those businesses seeking to expand into a second property.
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Assessment & feedback
No commitment to increase the threshold was made.
Existing Support Measures
Response accuracy
Q7
Partial Answer
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Context
Local traders in Dudley face issues such as low footfall, empty shops, and shoplifting, affecting their ability to compete with online retailers. These challenges are impacting businesses like Sukibinder Singh's Little Italy.
Traders like Sukibinder Singh, who owns Little Italy in Dudley, tell me how low footfall, empty shops and shoplifting are putting people off coming to the town centre. Will my hon. Friend set out what action he is taking on business rates and targeted reliefs to help bricks-and-mortar businesses to compete and prosper?
We are working on the high streets strategy and have provided a wedge in the tax system so that the rate that online giants pay for their warehouses is a third higher than the rate paid by the smallest businesses on the high street. We will keep looking at the issue and at what more we can do to support businesses across the tax system.
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Assessment & feedback
The specific ask regarding targeted reliefs for high street businesses was not directly addressed.
Response accuracy
Q8
Partial Answer
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Context
The Federation of Small Businesses warns that small businesses will face a cost cliff edge in April due to the cumulative impact of new taxes and responsibilities.
Small businesses are the backbone of our economy, but the Federation of Small Businesses is warning that they will face a cost cliff edge in April because of the cumulative impact of all the new taxes and responsibilities put on them at the same time. During the course of the Finance Bill, we Liberal Democrats have repeatedly called for an assessment of the cumulative impact of taxes on hospitality and small businesses, including business rates. When the Government bring forward their high streets strategy, will it include an assessment of the cumulative impact of all tax changes—yes or no?
When we bring forward the high streets strategy, it will look in the round at what more we can do on regulation, licensing and the decisions that are made in the Treasury to continue to support small businesses and those on our high streets. That is incredibly important, and we will continue to look at that closely.
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Assessment & feedback
The specific ask for an assessment of cumulative tax impacts was not directly addressed with a clear yes or no.
Response accuracy