The government has published draft legislation to permanently cut business rates for retail hospitality and leisure properties from 2026.
The tax cut will be funded by a tax rise for the very largest business properties, such as online sales warehouses, the government added.
Until then, 250,000 retail, hospitality and leisure (RHL) properties will receive 40% relief off their business rates bills up to £110,000 per business to help smooth the transition to the new system.
This support is alongside the Budget announcement to freeze the small business multiplier, together with Small Business Rates Relief protecting over a million properties.
James Murray, Exchequer Secretary to the Treasury, said: ‘For too long the business rates system has been working against our high streets.
‘[This] is a major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed.
‘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.’
21/11/2024
View all >
24/09/2026
ONS releases labour market overview for September 2026
The ONS have released their latest estimates of employment, unemployment, economic inactivity, and other employment-related statistics for the UK.
READ MORE
Business group urges Chancellor to ‘restore business confidence'
The Institute of Directors (IoD) has called on Chancellor John Healey to help restore confidence amongst UK businesses in the upcoming Autumn Budget.
UK missed out on £2tn of investment, study finds
A study carried out by consultancy Oxford Economics has suggested that the UK has missed out on almost £2 trillion in investment in business and infrastructure over the past quarter of a century.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.