Business Rates Relief: High-street Businesses

England is fortunate compared to Scotland where no retail or leisure business rates relief exists. The hon. Member should be thankful for the position in England.

Highlighted the Employment Rights Bill's potential to add £5 billion a year in costs, leading half of major retailers surveyed by the British Retail Consortium to predict job cuts.

Local businesses are under unprecedented threat due to the current business rates system. In Surrey Heath, over £30 million in business rates will be contributed in 2025-26, yet less than £1 million will be retained locally.

Explained that the Chancellor sets the rate at fiscal events and assured that the Valuation Office Agency would be integrated into HMRC to improve service efficiency. Explained that new lower multipliers of RHL properties will apply to all RHL properties with rateable values below £500,000, setting out a standard RHL multiplier and a small RHL multiplier for properties with rateable values of £51,000 and below.

The Conservative government previously doubled small business rates relief and provided long-term support through initiatives like the towns fund. The current 40% discount will leave many high street businesses worse off, with some facing increased costs up to £925 million.

High street businesses face rising costs of energy, heating, water, and insurance, along with the rise in national insurance contributions that pressure staff-hiring businesses. The Minister is expected to address these concerns.

The Member spoke about the cumulative impact of changes in business rates, national insurance for employers, and energy costs on small businesses. He argued that it is entrepreneurs who create growth, not the Government.

The Member discussed the importance of town centres as social hubs and highlighted the challenges faced by independent businesses due to changes in business rates relief. He mentioned a case study of Fuggles bar, where business rates increased by 50% after the relief cut from 75% to 40%. Pointed out that the previous speaker was confused and in the wrong debate

Asked for assurance on VOA resources to handle appeals swiftly, particularly regarding high street retailers and hospitality businesses.

High streets matter as they support local jobs and serve as social hubs. Communities feel loss when high streets decline or shut down during the pandemic, but generous public support helped avoid mass closure.

April’s reduction in relief left a shopkeeper with an additional £2,000 bill on top of a £5,000 bill despite potential eligibility for exemption, leading to the threat of closure. The hon. Lady agrees that reform is necessary to prevent such closures and their impact on local high streets. The Liberal Democrats in Somerset are now delivering a successfully run administration after a very difficult run of Conservative irresponsibility. The constituency needs a root-and-branch reform of the system to drive positive change.

Mr Paul Davis of Styles Menswear in Bridgwater has seen his business rates increase from £3,000 to £9,000 a year. The situation is desperate due to extensive roadworks and local council actions.

Asked the Minister to increase the business rates discount from 40% to 75% for RHL properties in the intervening year. Expressed concern that even under the reformed system, future rates bills could go up, urging the Minister to protect opportunities for small businesses to create jobs and wealth.

Asked the Government to reflect on the impact of national insurance hikes combined with changes in business rates, which are causing significant financial pressure for businesses. In Torbay, businesses are facing challenges due to increased rates and national insurance hikes, leading to staff cuts and concerns about survival. The Liberal Democrats propose a commercial land value levy for major rebalancing of the UK economy.

Small businesses need relief from red tape and taxes. Publicans in South Shropshire, including Ludlow with its fine food festival, are struggling to make a profit despite stable footfall and turnover. Asked the Minister to confirm if permanently lower tax rates apply to all businesses and no businesses will receive tax rises.

The changes in the autumn Budget reducing retail, hospitality, and leisure relief from 75% to 40% will decimate support for small businesses and lead to closures across high streets. The Sainsbury’s cafe in Waterlooville announced closure due to these changes.