Impact of changes to business rate relief on high street business

A debate is taking place in the House of Commons Chamber on 4 June 2025 titled “Impact of changes to business rate relief on high street business”. The debate is being led by Sir Gavin Williamson (Conservative, Stone, Great Wyrley and Penkridge).

The Government plans to introduce three new multipliers into the business rates system from the 2026/27 financial year. Two of these will apply to retail, hospitality and leisure (RHL) properties. The third will apply to larger properties, with a rateable value above £500,000.

This system is intended to replace discretionary relief granted on this class of properties. Relief schemes for RHL properties have been in place since 2019/20. In 2024/25, the rate of relief was 75%, but in 2025/26, it fell to 40%. 

Business rates are devolved to Scotland, Wales and Northern Ireland. These policy changes apply in England only.