Retail, Hospitality and Leisure: Business Rates

16. What assessment she has made of the potential impact of changes to business rates announced in the autumn Budget 2025 on the retail, hospitality and leisure sector.

The Government have introduced a support package worth £4.3 billion to protect rate payers across the country against the impact of the independently set new property values, whereby properties have been valued for the first time since the pandemic. We have also introduced permanently lower multipliers for eligible retail, hospitality and leisure properties worth nearly £1 billion a year, and this will benefit more than 750,000 high street businesses.

I recently met Chris, the owner of Chapters Hair in Bromsgrove, who told me that current conditions are the most difficult he has faced in 25 years of trading, which he attributes directly to the decisions taken by the Chancellor. Why is it that the Chancellor of the Exchequer and the Government across the board are riding roughshod over what business owners think—the people who know best how to run their businesses—and when will the Government get off their backs and get on their side?

Under the previous Government, the business rates multiplier—the tax rate—paid by medium-sized businesses and the very largest businesses was exactly the same. We have implemented significant reforms to the way businesses rates work so that the system supports the high street, and the tax rate paid by small high street businesses will now be 33% lower than the rate paid by the largest properties, such as online giants. Of course, the revaluation since the pandemic has had an effect, and that is why we have stepped in to provide support.

I call the shadow Minister.

This month, a comprehensive survey by UKHospitality showed that one in seven of our hotels, pubs and restaurants will close as a direct result of the Chancellor’s policies. Many of those businesses represent the hopes and dreams, hard work and savings of the people who set them up. Therefore, as I am permitted, rather than having the Minister come to the Dispatch Box, may I ask the Chancellor to come to the Dispatch Box to answer this? If it was not me standing here but one of those people who had founded a business and is now going through the gut-wrenching process of closing it because of her policies, what would she say to them?

Of course, the Government want to do all we can to support businesses up and down the country—small, medium and large. That is why we are working hard to put the economic stagnation we had over the last 14 years behind us. We are seeing economic growth rising—growing by 0.5% in February; we saw unemployment falling; and we were seeing Government borrowing falling as well. Those are the long-term changes we need to lay the foundations so that businesses can grow, invest and hire more people. It is disappointing that the Conservatives seem to have forgotten what we need to provide stability in our economy.