ReplyThe Government is committed to creating a fairer business rates system that supports small businesses and protects the high street. Over a third of properties (more than 700,000) already pay no business rates as they receive 100 per cent Small Business Rates Relief (SBRR), with an additional c.60,000 benefiting from reduced bills as this relief tapers. To deliver our manifesto pledge to create a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century, from 2026-27, we intend to introduce permanently lower tax rates for eligible retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000.The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context. Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. We have also frozen the small business multiplier, protecting over a million properties from inflationary bill increases.Furthermore, Rural Rate Relief aims to ensure that key amenities are available, and community assets protected in rural areas. It provides 100% rate relief for properties that are based in eligible rural areas with populations below 3,000.As highlighted in the Transforming Business Rates Discussion Paper published at Autumn Budget 2024, the Government was 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. The Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.