Chancellor Rachel Reeves announces changes to business rates

Transcript

00:00Let us now turn to our high street businesses. I know for them a major source of concern

00:07is business rates. From 2026-27, we intend to introduce two permanently lower tax rates

00:14for retail, hospitality and leisure properties, which make up the backbone of our high streets

00:19across the country. It is our intention that it is paid for by a higher multiplier for

00:26the most valuable properties. But the previous Government created a cliff edge next year

00:31as temporary reliefs end. So I will today provide 40% relief on business rates for the

00:37retail, hospitality and leisure industry in 2025-26, up to a cap of £110,000 per business.

00:47Alongside this, the small business tax multiplier will be frozen next year.

00:52Next, I can confirm that alcohol duty rates on non-draft products will increase in line

00:59with RPI from February next year. But nearly two-thirds of alcoholic drinks sold in pubs

01:05are served on draft. So today, instead of uprating these products in line with inflation,

01:11I am cutting draft duty by 1.7%, which means a penny off the pints in the pub.