Written questions by Hollinrake.

What assessment she has made of the impact of family-owned businesses on the local economy; and what assessment has she made of the potential impact of changes to the Business Property Relief on local communities.

At Autumn Budget 2024, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services. These were tough decisions given the situation we inherited from the previous administration, but the Government has taken them in a way that makes the tax system fairer and more sustainable.The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

What assessment she has made of the potential impact of increased availability of long-term fixed-rate mortgages on first-time buyers.

While the design and availability of mortgages is a commercial decision for lenders in which the Government does not intervene, this Government welcomes innovation in the mortgage market, particularly where this provides borrowers with the greatest choice possible about the level of interest rate risk that they are willing to take on. Lenders in the UK already do offer this type of mortgage product, and any borrowers, including first-time buyers, looking to take out a long-term fixed rate mortgage are encouraged to shop around and speak to a broker to find the best possible product for their circumstances.

What assessment she has made of the potential role of long-term fixed-rate mortgages in enabling more first-time buyers to get on the property ladder.

While the design and availability of mortgages is a commercial decision for lenders in which the Government does not intervene, this Government welcomes innovation in the mortgage market, particularly where this provides borrowers with the greatest choice possible about the level of interest rate risk that they are willing to take on. Lenders in the UK already do offer this type of mortgage product, and any borrowers, including first-time buyers, looking to take out a long-term fixed rate mortgage are encouraged to shop around and speak to a broker to find the best possible product for their circumstances.

If she will make an assessment of the potential cumulative impact of the (a) increase in National Insurance contributions, (b) changes to the level of retail, hospitality and leisure rate business relief from 2025-26 and (c) changes to the business rate surcharge on properties above £500,000 Rateable Value from 2026-27.

To repair the public finances and help raise the revenue required to support public services, the Government has taken the difficult decision to increase employer National Insurance. The Government recognises the need to protect the smallest employers which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year. A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November 2024. Without any government intervention, Retail, Hospitality and Leisure (RHL) relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier. From 2026-27 we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with rateable values of £500,000 and above. These represent less than one per cent of all properties, but capturing the majority of large distribution warehouses, including those used by online giants. The Government will confirm the rates for the new multipliers at Budget 2025. Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements. The Non-Domestic Ratings Bill sets out the parameters within which the government proposes the multipliers would be set by Treasury regulations.

Whether any private sector companies contracted to her Department will receive increased payments for the increase in employer National Insurance contributions.

Reviewing contractual payment provisions is dependent on the applicable terms and conditions of individual agreements. Supplier requests for such pricing reviews would be considered as part of standard contract management practice.

Pursuant to the Answer of 9 December 2024 to Question 16945 on Business Rates, if she will make an estimate of business rates receipts for (a) 2024-25 and (b) 2025-26 for England only.

The Ministry of Housing, Communities & Local Government (MHCLG) publish non-domestic ratings receipts data and forecasts for the financial year ahead in England. As such, projections for non-domestic rates income for 2025-26 will be published in due course by MHCLG. For 2024-25, local authorities estimate the non-domestic rating income to be £26.3 billion: https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2024-to-2025/national-non-domestic-rates-collected-by-councils-in-england-forecast-for-2024-to-2025

Whether free schools will be affected by changes to charitable business rate relief for schools.

The Government is legislating to remove the eligibility of private schools in England to business rates charitable rate relief. The Government has defined a “private school” as a school at which full time education is provided for pupils of compulsory school age, where fees or other consideration are payable for that provision of full-time education. Legally, free schools are academies so do not charge fees for education. Therefore, they will not be impacted by the removal of charitable rate relief from private schools.

What her policy is on business rate relief in (a) freeports, (b) investment zones and (b) legacy enterprise zones; and how that relief will apply to the new business rate multiplier on hereditaments over £500,000 rateable value.

Freeports, Investment Zones and Enterprise Zones have access to a range of tax reliefs, including 100 per cent business rates relief. The eligibility criteria for business rates relief in Freeports and Enterprise Zones is available online: https://www.gov.uk/apply-for-business-rate-relief, as well as guidance for local authorities on granting Investment Zone business rate relief: https://www.gov.uk/government/publications/investment-zones-business-rates-relief-scheme-guidance-for-local-authorities/investment-zone-business-rates-relief-local-authority-guidance. The Government has announced its intention to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. This tax cut must be sustainably funded, and so we intend to apply a higher rate from 2026-27 on the most valuable properties - those with a Rateable Value of £500,000 and above. When calculating business rates liabilities, the multiplier is applied first and then reliefs are applied after. This means that eligible businesses in these areas will receive 100 per cent business rates relief on their liability under the new multipliers.

What assessment she has made of the potential merits of permitting community owned facilities to use red diesel for the purposes of (a) heating and (b) electricity generation.

In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. Following consultation in 2020-21, the previous Government confirmed that some sectors would retain the entitlement to use red diesel, including non-commercial heat and power generation, and domestic heating. A machine or appliance may use red diesel where 75% or more of the electricity or heat generated is for premises, or parts of premises, that are not used for commercial purposes. The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.

What assessment she has made of the potential impact of (a) family-owned businesses and (b) changes to Business Property Relief on the economy of local communities.

At Autumn Budget 2024, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services. These were tough decisions given the situationwe inherited from the previous administration, but the Government has done so in a way that makes the tax system fairer and more sustainable. The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

What steps her Department is taking to support small high street businesses reliant on Small Business Rate Relief.

Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000. The Government has no plans to withdraw SBRR, which is a permanent relief set down in legislation. As highlighted in the Transforming Business Rates Discussion Paper, the Government is interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property.

Whether properties with a rateable value of £15,000 or less will be able to continue to claim Small Business Rate Relief for the 2026-27 year.

Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000. The government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Transforming Business Rates Discussion Paper, the Government is interested in hearing stakeholders’ views on whether the current eligibility criteria impact businesses' incentives to invest and expand into a second property.

What assessment her Department has made of the financial impact of potential changes to Small Business Rate Relief after the introduction of new non-domestic rate multipliers on small businesses; and whether she plans to take steps to mitigate this impact.

Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value. Eligible properties under £12,000 receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000. The government is committed to retaining SBRR, which is a permanent relief set down in legislation. As highlighted in the Transforming Business Rates Discussion Paper, the Government is interested in hearing stakeholders’ views on whether the current eligibility criteria impact businesses' incentives to invest and expand into a second property.

How many hereditaments were classified per individual special category codes within the shops sub-sector special category code grouping by the Valuation Office Agency in each of the last ten years for which figures are held.

As part of its official statistics, the Valuation Office Agency publishes the number of hereditaments by special category code under the shops sub-sector for England and Wales for the past 10 years. This can be found under the stock of non-domestic properties collection here: www.gov.uk/government/collections/non-domestic-rating-stock-of-properties-collection For each year from 2019 onwards, the table ‘Stock Scat’ shows the data as at 31 March each year. Prior to 2019, the data is shown within the ‘NDR Stock of Properties’ tables.

Pursuant to the Answer of 4 December 2024 to Question 16139, on Hospitality Industry and Leisure: Business Rates, and to the Answer of 10 December 2024, to Question 17139, on Business Rates, on what basis and using what methods her Department has determined that the majority of large distribution warehouses, including those used by online giants, will be subject to the higher multiplier which her Department plans to apply to properties which have a Rateable Value above £500,000.

To deliver our manifesto pledge, from 2026-27, the Government intends to protect the high street by introducing permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with Rateable Values below £500,000. This permanent tax cut will ensure that RHL properties benefit from much-needed certainty and support. This tax cut must be sustainably funded, and so the Government intends to introduce a higher rate on the most valuable properties from 2026-27, that is, those with a Rateable Value of £500,000 and above. These represent less than one per cent of all properties, but include the majority of large distribution warehouses, including those used by online giants. The Valuation Office Agency publishes a breakdown of the Non-domestic Rating Stock of Properties by Sector, Sub-Sector and Special Category (SCat). This includes a ‘large distribution warehouses’ category, which is SCat 151.

What the average Rateable Value is of an independent school.

The Valuation Office Agency publishes this data as part of its official statistics on the stock of non-domestic properties: www.gov.uk/government/statistics/non-domestic-rating-stock-of-properties-2024 The mean rateable values for pre-school nurseries and independent schools in England and Wales are published on rows 254, 257 and 259, under column E in the Stock SCat, 2024 spreadsheet. Please note, figures show the mean rateable value in thousands of pounds.

What information other than address and rateable value the Valuation Office Agency holds on pubs for business rate purposes.

The Valuation Office Agency (VOA) holds information about pubs to assess them for non-domestic rating purposes, one of the VOA’s statutory duties. The vast majority of the information held is sent by occupiers of pubs following a statutory request for information. The form sets out the information requested and can be found here: https://www.gov.uk/government/publications/vo-6010-request-for-rental-information-public-houses. In some cases, the VOA may hold other records relating to the property, including the age, area, and information about heating, car parking and any modernisation carried out.

What the average Rateable Value is of a pre-school nursery.

The Valuation Office Agency publishes this data as part of its official statistics on the stock of non-domestic properties: www.gov.uk/government/statistics/non-domestic-rating-stock-of-properties-2024 The mean rateable values for pre-school nurseries and independent schools in England and Wales are published on rows 254, 257 and 259, under column E in the Stock SCat, 2024 spreadsheet. Please note, figures show the mean rateable value in thousands of pounds.

Whether the Valuation Office Agency holds data on the average rateable value of municipal swimming pools.

The Valuation Office Agency publishes this data as part of its official statistics on the stock of non-domestic properties:www.gov.uk/government/statistics/non-domestic-rating-stock-of-properties-2024. The mean rateable value for municipal swimming pools in England and Wales are published on rows 229 and 238 under column E in the Stock Scat, 2024 spreadsheet. Please note, figures show the mean rateable value in thousands of pounds.

What plans she has to continue the 2024 to 2034 film studio business rate relief announced in March 2024 at the rate announced at that time.

At Autumn Budget 2024, the Government announced that it intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties, including film studios, with a rateable value (RV) of £500,000 and above. The Government has announced that it is proceeding with 40 per cent relief for eligible film studios in England on their gross business rates bills until March 2034. The costing was published at Spring Budget 2024 - . Business rates bills are calculated by applying the relevant multiplier first and so film studios will receive 40 per cent relief on their total liability. The Government will confirm the rates for the new multipliers at Budget 2025.