The Government has published its draft legislation to permanently cut business rates for retailers, as from 2026.
Largely welcomed by the sector, thousands of businesses across England and Wales will benefit from the reduction which is being funded by tax rises against the largest and top 1% of high value properties, targeting online sales warehouses such as Amazon’s.
Acting as a stop gap until April 2026, retail, hospitality and leisure (RHL) properties will receive 40% relief on business rates bills, up to £110,000 per business.
The Government has said its overall support package on business rates is worth more £1.6 bn for 2025-26.
Exchequer Secretary to the Treasury, James Murray said: “This Bill paves the way for a permanent cut to their tax rate, helping to level the playing field between them and online and out-of-town businesses.
“For too long the business rates system has been working against our high streets. Today (Nov 15) is a major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed.”
Welcoming the move, Craig Beaumont, Federation of Small Businesses, Executive Director, added: “We are pleased to see James Murray and the whole Treasury team take this important step forward today – legislating for the significant increase to the Employment Allowance which FSB strongly championed, to protect smaller businesses with employment costs. But also taking a decisive step forward on business rates reform.”
Read more: Next steps set out to permanently cut business rates for the high street – GOV.UK