Claim e7407002Checked 21 Jul 2026
Strongly SupportedOn the evidence scale
The government is permanently lowering business rates for retail, hospitality and leisure businesses in response to the identified challenges.
Keir StarmerLabourThe Prime Minister·Engagements·03 Jun 2026Causal
Reasoning & Evidence21 Jul 2026
The claim that the UK government is permanently lowering business rates for retail, hospitality and leisure (RHL) businesses in response to identified challenges facing those sectors is strongly confirmed by multiple official UK government sources. The UK government's own guidance page (GOV.UK) states that from April 2026, two lower business rates multipliers are being introduced for RHL properties with rateable values below £500,000, set 5p below their national equivalents. It explicitly describes this as "a permanent tax cut worth nearly £1 billion per year and benefitting over 750,000 RHL properties," and states "unlike the current RHL relief, the new rates are permanent, giving businesses certainty and stability." The Budget 2025 RHL factsheet similarly confirms "a permanent tax cut worth nearly £900 million per year and benefitting over 750,000 RHL properties," replacing the temporary 40% RHL relief that had been rolled over year-on-year since the pandemic. Statutory Instrument 2026/4 (The Local Government Finance Act 1988 regulations) gives legal effect to the permanently lower multipliers, confirming they will remain 5p below national equivalents every year, with effect from 1 April 2026 subject to parliamentary approval. The government's "Effects of the business rates RHL multipliers" publication explicitly states these reforms are intended "to provide certainty and support to the high street" and "delivers on the government's commitment to create a fairer business rates system that protects the high street." The government's pubs support announcement also references "the challenges they face" as motivation. This directly links the policy to the identified challenges referenced in the speech. All elements of the claim — the permanence, the targeting of RHL businesses, and the policy being a response to sector challenges — are confirmed by primary government sources, budget documents, and enacted legislation. Sources: - GOV.UK: Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure — https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure - GOV.UK: Budget 2025 Retail, Hospitality and Leisure Factsheet — https://www.gov.uk/government/publications/budget-2025-retail-hospitality-and-leisure-factsheet/budget-2025-retail-hospitality-and-leisure-factsheet - GOV.UK: Effects of the business rates retail, hospitality and leisure multipliers and high-value multiplier — https://www.gov.uk/government/publications/effects-of-the-business-rates-retail-hospitality-and-leisure-multipliers-and-high-value-multiplier/effects-of-the-business-rates-retail-hospitality-and-leisure-multipliers-and-high-value-multiplier - GOV.UK: Government announces support package that backs British pubs — https://www.gov.uk/government/news/government-announces-support-package-that-backs-british-pubs - Legislation.gov.uk: The Local Government Finance Act 1988 (Calculation of Non-Domestic Rating Multipliers for Retail, Hospitality or Leisure) (England) Regulations 2026 — https://www.legislation.gov.uk/uksi/2026/4/pdfs/uksiem_20260004_en_001.pdf - GOV.UK: Confirmation of Budget package and the Non-Domestic Rating Multipliers for 2026/2027 — https://www.gov.uk/government/publications/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027
From speech
I thank the hon. Member for the question. I recognise the challenges that she identifies. That is why we are permanently lowering business rates for retail, hospitality and leisure businesses. Every pub will get 15% off its new business rates bill, and bills will be frozen in real terms for a further two years. In relation to VAT, she will see that we are offering support by cutting VAT on children’s meals in restaurants—particularly over the summer period—with those savings set out two weeks ago by the Chancellor.
Sources opened
[1]gov.uk
https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure
[2]gov.uk
https://www.gov.uk/government/publications/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027
[3]gov.uk
https://www.gov.uk/government/publications/budget-2025-retail-hospitality-and-leisure-factsheet/budget-2025-retail-hospitality-and-leisure-factsheet
[4]gov.uk
https://www.gov.uk/government/publications/effects-of-the-business-rates-retail-hospitality-and-leisure-multipliers-and-high-value-multiplier/effects-of-the-business-rates-retail-hospitality-and-leisure-multipliers-and-high-value-multiplier
[5]legislation.gov.uk
https://www.legislation.gov.uk/uksi/2026/4/pdfs/uksiem_20260004_en_001.pdf
[6]gov.uk
https://www.gov.uk/government/news/government-announces-support-package-that-backs-british-pubs
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