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Business Rates Relief: High-street Businesses
04 June 2025
Lead MP
Gavin Williamson
Stone, Great Wyrley and Penkridge
Con
Responding Minister
James Murray
Tags
EconomyTaxationEmployment
Word Count: 12439
Other Contributors: 16
At a Glance
Gavin Williamson raised concerns about business rates relief: high-street businesses in Westminster Hall. A government minister responded.
Key Requests to Government:
The right hon. Member calls on the Government to reform rates and exemptions to boost local high streets' viability and support businesses such as those in hospitality which contribute significantly to employment and economic value.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The Government’s reduction in business rates relief from 75% to 40% has had a significant impact on many businesses across Staffordshire and the west midlands. This change is particularly damaging for small family-run enterprises that are struggling to recover from the pandemic, which saw a shift towards online shopping habits. The increase in business rate bills ranges from £3,589 to £8,613 for shops and from £5,051 to £12,122 for restaurants.
Inverness, Skye and West Ross-shire
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.
Chris Philp
Con
Croydon South
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.
Al Pinkerton
LD
Surrey Heath
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.
James Murray
Lab
Ealing North
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.
James Wild
Con
North West Norfolk
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.
Jim Shannon
DUP
Strangford
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.
Lewis Cocking
Con
Broxbourne
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.
Mike Martin
LD
Tunbridge Wells
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
Mohindra
Con
Harrow East
Asked for assurance on VOA resources to handle appeals swiftly, particularly regarding high street retailers and hospitality businesses.
Peter Fortune
Con
Bromley and Biggin Hill
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.
Sarah Dyke
LD
Somerset West and Taunton
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.
Ashley Fox
Con
Bridgwater
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.
Gavin Williamson
Con
Bassetlaw
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.
Torbay
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.
Stuart Anderson
Con
Louth and Horncastle
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.
Suella Braverman
Con
Fareham and Waterlooville
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.
Government Response
James Murray
The Exchequer Secretary to the Treasury
Government Response
The Government are transforming the business rates system to support investment and growth. They will introduce permanently lower tax rates for RHL properties with rateable values below £500,000 from 4 April 2026, improving certainty and stability for high street businesses. Discussed the rates for new multipliers set at Budget 2025 and outlined Government support measures including a 40% business rates discount up to £110,000 per business in 2025-26. Emphasised plans for modernising the business rates system and announced an interim report on policy development due in summer with further details at autumn Budget 2025.
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Assessment & feedback
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.