PARLIAMENTARY WRITTEN QUESTION
(25 March 2025)

To ask the Chancellor of the Exchequer, pursuant to the Answer of 24 March 2025 to Question 39774, what assessment she has made of the medium-long term impact of the closure of (a) grassroots and (b) cultural nightlife businesses on tax revenue.

Asked by:
Mr Paul Kohler (Liberal Democrat)

The Government is creating a fairer business rates system that protects the high street. That is why we have announced our intention to introduce permanently lower rates for high street RHL properties, with rateable values below £500,000, from 2026-27, which we intend to fund through a higher rate for high-value properties (those with a rateable value of £500,000 and above).

Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year to ensure that over 250,000 RHL properties see a full 40 per cent reduction on their liability, and we have frozen the small business multiplier. Taken together with small business rates relief, freezing the small business multiplier has protected over one million properties from inflationary bill increases.

To recognise the economic and cultural importance of British pubs, the government also announced a duty cut on approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint.

Answered by:
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