Tax cut to support high street businesses

We need a fairer business rates system that protects the high street, supports investment and is fit for the present day. High streets are places that bring people together, foster community pride and boost economic activity in our area.

That is why, I have been working in Government to ensure we have a long term plan so that small businesses in retail, hospitality, and leisure pay lower business rates. Through the introduction of new, lower multipliers to achieve this goal, paid for by a higher multiplier on the 1% of properties valued at over £500,000, and typically large warehousing. Critically as well as supporting vital independents, we will take away the business cap which ruled out those with more than one business premises being able to benefit, and therefore safeguarding household names which draw footfall in town centres and on high streets.

We will provide certainty to high streets by making this a permanent tax cut for retail, hospitality and leisure properties. As seen during Covid, the relief to the hospitality sector helped many businesses stay afloat, and we want to continue this support in the face of the cost-of-living crisis.

We have also frozen the small business rates multiplier for 2025-26. Taken together with the small business rates relief scheme, that means that more than 1 million properties will be protected from any inflationary increases next year. 𝐓𝐡𝐚𝐭 𝐢𝐬 𝟏 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐢𝐞𝐬 𝐩𝐫𝐨𝐭𝐞𝐜𝐭𝐞𝐝 𝐛𝐲 𝐭𝐡𝐢𝐬 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭.

Our high streets are the backbone of our community. But unfortunately, the change from on-the-street to online and rising operational costs, have left restaurants and shops no choice but to close. I want to see our high street thriving with enterprise, local businesses and a hub for local people, and these cash steps will work to rejuvenate our town.

Town centres are more than just a place to do business; they are a place for a community to come together – and I will continue to work in government to bring life back to our high street.