Dan Tomlinson MP: speeches

Speeches

• 27 Jan 2026 · Business Rates · Hansard source

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  There is a big picture that we need to move to with business rates: making sure that, permanently, we have differential treatment for retail, hospitality and leisure businesses and those with higher value, particularly the large online warehouses that are causing the economic rebalancing that we do not really want to see and that is harming our high streets. The Government set out the reforms in the Budget in respect of the 5p reduction in the multiplier. As I have explained to Members, that is a transfer of nearly £1 billion in tax away from the high street—less tax—towards the larger online giants. I want to continue to engage on all tax matters that affect the high street in the run-up to the next Budget, and decisions will, of course, be made in the usual way.

• 27 Jan 2026 · Business Rates · Hansard source

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  I would be happy to discuss that matter with my hon. Friend. Indoor play is a really valuable and growing part of our economy, but there are challenges. With more free childcare, it may be that fewer people are going in during the day, and I know that many indoor play centres have seen increases in their rateable values. We set out our proposals on business rates at the Budget to support these businesses with significant caps this year, next year and the year after.

• 27 Jan 2026 · Business Rates · Hansard source

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  I really look forward to working with my hon. Friend on important matters such as the high street strategy, and I hope that he has been in conversation with his local authority and businesses about some of the other measures that the Government are introducing and the issues that are important to him. High street rental auctions have real potential to be powerful in forcing shops that are being left vacant back into use. The introduction of the community right to buy should also be an effective change, and I hope that we will be able to see it implemented in his constituency and across the country.

• 27 Jan 2026 · Business Rates · Hansard source

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  The definition of “pubs” that is used for the changes that have been announced today is the same one that was used when the previous Government implemented a relief. I believe that that was in 2017, so it is a long-standing definition. I encourage the hon. Member to find that on the gov.uk website and send it to the relevant business. I do not know the precise details of the pub that he mentions, but we are sticking with the long-standing definition.

• 27 Jan 2026 · Business Rates · Hansard source

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  The 15% reduction will apply to all pubs. As the hon. Member knows, there are different caps for pubs depending on their size, but if bills had been frozen, no bill would have fallen next year. Instead, because we have decided to apply the 15% reduction, around 75% of pubs will see their bills either stay the same or fall. I acknowledge what she says about the very largest pubs, but we will still significantly reduce the increase that they would have expected this year. Their bills will then be frozen in full in years two and three of the period before the revaluation review—I am glad that the hon. Member is able to welcome that review. Its results will be implemented for future revaluations. The hon. Member mentioned temporary event notices. We are trying to implement the recommendations of the licensing review, which was carried out in conjunction with pubs and other businesses in the sector, so although she may think that changes such as these do not touch the sides or make a difference, pubs themselves told us that—in addition to ensuring that we could support them in the right way fiscally—such changes would be welcome. I hope that pubs that are able to make use of them will do so. The hon. Member also asked about the 20p multiplier. She is right that we legislated for a reduction of up to 20p, but we have to see these things in the balance. The decision to reduce the multiplier by 5p came with a £900 million price tag; reducing it by the full 20p would cost significantly more. Taken in the round, our package of support has a lower tax rate within the system—a lower multiplier—but also steps in with caps to support businesses if they are experiencing increases in their values or having to adjust to the slow unwinding of the pandemic relief. The hon. Member asked about VAT. All I will say—she will expect this—is that when the Liberal Democrats had the chance in government, they put VAT up; now, they seem to be calling for it to go down. Finally, on the question of what I knew and when, as the VOA set out, Ministers were provided with details of the increases in the valuations. However, at that time, we did not foresee—I did not foresee—that after the changes in the rateable values that were published at the Budget, pubs and their representative bodies would want to withdraw their support for the independently and previously agreed methodology. Given that and the Government’s judgment that there are issues, to which the hon. Member has referred, we thought it was right to pause, review the methodology and ensure that it is fit for the future for pubs and hotels.

• 27 Jan 2026 · Business Rates · Hansard source

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  As a London MP, I do not get the joy of staying in a hotel in my hon. Friend’s constituency—instead, I get the joy of the Northern line on the route home. She asks an important question about hotels, which are valued in a different way from some other sectors. Their methodology is well established, but as with pubs, specific concerns have been raised, and the Government think it is right to review how hotels are valued for business rates purposes to ensure their valuations accurately reflect the market for those sectors. I intend to engage with hotel businesses and their representative groups on this important issue. Any future changes to business rates for hotels or other businesses will be considered in the usual way as part of the usual Budget processes.

• 27 Jan 2026 · Business Rates · Hansard source

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  The hon. Member is right that each devolved Government have full control over the structure and level of business rates in their part of the country. They set a business rates policy, retain all the revenues generated, and determine how they are spent.

• 27 Jan 2026 · Business Rates · Hansard source

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  As I have said, some live music venues are valued in a similar way to pubs, and will therefore be included in the relief. We think it fairest to provide the same level of relief to all music venues. The detail will be set out for the business in his constituency and others to see in the guidance, which I hope, if it has not already been published, will be published at some point today.

• 27 Jan 2026 · Business Rates · Hansard source

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  We have set out a package of support for hotels and all other businesses. It is worth around £2 billion this year and £4 billion over the next three years. If there are hotels in the hon. Gentleman’s constituency that are facing significant increases in their rateable values this year, the increases in their bills will potentially be many multiples lower, because bill increases are capped at either £800 for small businesses or at 15% or 30% for the largest. It is really important that we distinguish—I am not saying that he is not doing so, because I am not sure of the detail—between the change in rateable values and the change in bills. That is important, and it sometimes gets lost in this discussion.

• 27 Jan 2026 · Business Rates · Hansard source

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  That is a very good question, and it allows us to reflect on the fact that back in 2009, Nick Clegg, the former leader of the Liberal Democrats, said that we did not need to invest in nuclear power, because it would not come online until the mid-2020s. We are in the mid-2020s now, and we would have benefited from long-term investments in clean and green power, driving down energy bills for consumers and for businesses across the country. We are now taking the long-term steps needed to invest in our energy security and bring bills down. That is incredibly important, and I hope that the steps we have taken on business rates and tax can be welcomed and that businesses in the hon. Member’s constituency and across the country can engage through the various sector bodies with the high street strategy that I have announced.

• 27 Jan 2026 · Business Rates · Hansard source

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  I thank my hon. Friend for his support for the announcements made today. Because I do not know those specific independent venues, it would not be right for me to comment here, but he is welcome to check the guidance and to encourage the venues to check it online. We have made it clear that our policy intent is for pubs and music venues to be covered by these changes.

• 27 Jan 2026 · Business Rates · Hansard source

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  We want to work with the hotel sector on the review I have announced today. We will make sure it reports in time to be implemented by the Valuation Office Agency by the date of the next revaluation. For hotels at the very far end of the distribution of changes in rateable value—with an increase that large, I believe the one the hon. Member mentioned is—that is precisely why we have implemented the support we have. If it is worth less than £100,000, its increase will be capped at 15% this year; if it is worth more, its increase will be capped at 30%. We are aware that that is still an increase, but it is significantly less than it would have been if we had not stepped in to provide that support.

• 27 Jan 2026 · Business Rates · Hansard source

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  I would not want to be the Minister who caused that to happen. My hon. Friend has made a very good point, and, as the parent of a young child, I can say how much I value soft play, even though it is rather exhausting at times. I have set out the specific reasons why we have taken this approach to pubs and live music venues, and I am glad that my hon. Friend welcomes that for the businesses in her constituency. More broadly, the Government did come forward with £4.3 billion of support, most of which is coming this year, and we will of course continue to engage with businesses and with parliamentarians on this important issue in the run-up to future Budgets.

• 27 Jan 2026 · Business Rates · Hansard source

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  Yes, we will continue to work with pubs, because we do value them. I want to be clear, however, that we value all of the businesses on the high street. We value our hospitality businesses, our retail businesses and those that work in leisure and soft play, which I believe was mentioned earlier. All the different businesses that provide life and vibrancy on our high streets are important. I have set out the particular challenges of the rateable value methodology for pubs and the big challenges they have faced over the last 14 years, with 7,000 closing, but we want to make sure we continue to do all we can to support high streets in my hon. Friend’s constituency and across the country.

• 27 Jan 2026 · Business Rates · Hansard source

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  May I apologise, Mr Speaker, for not letting you know in advance that the statement would be running over 10 minutes?

• 27 Jan 2026 · Business Rates · Hansard source

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  The review of the methodology for pubs that we have announced today will be conducted as rapidly as possible, and I hope that it will conclude this year. We also want to look closely at the methodology used to value hotels, which is similar but not quite the same as that used for pubs. I am sure we will get into that in Committee in due course. We want to ensure that those reviews about the changes to the methodology conclude in good time for the next revaluation, which is set to come into operation in 2029. My hon. Friend asks about the Government’s ambition to rebalance the system. As I outlined, last year’s Budget introduced a significant rebalancing, with the largest businesses having a tax rate multiplier that is 33% higher than that of typical businesses on the high street. I look forward to continuing to engage with hon. Members and businesses on business rates in the run up to the Budget in the usual way.

• 27 Jan 2026 · Business Rates · Hansard source

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  Around one in three businesses will continue to benefit from small business rates relief, and so will pay nothing at all. As for independent shops that are above the threshold and in the business rates system, many just above the threshold will be on the taper, and others will benefit from the support that was set out at the Budget.

• 27 Jan 2026 · Business Rates · Hansard source

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  I would be happy to have a further conversation with my hon. Friend about this issue. It is really important that no hotel will see its business rates bill go up by 100% this year. It may be that the Marine hotel has seen a really significant increase in its rateable value, and we will review the methodology because of the large increases. We are aware of those, and we want to work on this issue with the hotel industry. It sounds like the business is probably one of the larger ones, so its increase will be capped at 30%. If it is a smaller business, the increase may be capped at 15%. That is the difference that this Government are making. If it is a business receiving RHL relief, it would have had that relief removed overnight under the previous Government, with a 300% increase in rateable values for businesses in 2025.

• 27 Jan 2026 · Business Rates · Hansard source

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  I thank my hon. Friend for her engagement on behalf of the businesses in her constituency. She raises some interesting issues on tax, regulation and licensing when it comes to pubs and hospitality. I do not want to pre-empt the work of the high street strategy, which will be a cross-Government effort with the Home Office, the Department for Business and Trade, the Ministry for Housing, Communities and Local Government and the Treasury working together, but we want to hear about these things from businesses on the ground. I look forward to engaging with Members of Parliament from all parties as we work on the strategy in the coming months.

• 27 Jan 2026 · Business Rates · Hansard source

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  Because of the interventions announced today, the total business rates bill for pubs will fall over the coming years. As the hon. Member mentions, we are giving individual pubs a 15% reduction on their new bills, and then a real-terms freeze for the next two years. That is a significant intervention because of the significant challenges that pubs have faced—7,000 pubs have closed—and the issues with their RV methodology.

• 27 Jan 2026 · Business Rates · Hansard source

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  This year, we are three years on from the changes in alcohol duty that the last Government implemented. I am not sure whether they adopted the same policy position, but we made it clear that it would be reviewed after three years. As part of that usual process, we will be reviewing the reforms that were made in 2023. If my hon. Friend or other Members want to write to me about changes that they think should be made, I will, of course, be happy to receive that correspondence.

• 27 Jan 2026 · Business Rates · Hansard source

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  Let me apologise profusely for not letting you know in advance, Madam Deputy Speaker. This is the first time I have done one of these statements, and I will not make the same mistake again. I am glad that the same courtesy will be afforded to the shadow Chancellor, and I look forward to hearing a full 15 minutes of remarks from him. I am sure that they will be entertaining for us all. [ Interruption. ] I will make progress now, and we will hear more from the shadow Chancellor. This decision will mean that the amount of business rates paid by the pub sector as a whole will be lower in 2028-29 than it is today. This is Independent Venue Week, so it is particularly appropriate that our package will apply also to music venues. Many live music venues are valued as pubs, and many pubs are grassroots live music venues. It would not be right to seek to draw the line in a way that includes some and not others, and I thank MPs who have made constructive representations on this issue in recent weeks. In the meantime, we are pressing ahead with wider regulatory reforms, building on the new licensing policy framework in the Budget, and we are working with the sector to ensure that local authorities are using that to ease licensing decisions on the ground. As part of our ongoing licensing reforms, for home nation games in the later stages of the men’s football world cup this summer, pubs and other licensed venues will be able to open until 1 am or 2 am, depending on when the game starts. We will legislate to increase the number of temporary events notices for pubs and other hospitality venues, whether to help them screen world cup games, or for other community and cultural events. This Government are committed to helping pubs build sustainable business models over the long term. In the spring we will consult on further loosening planning rules to benefit pubs, helping them to add new guest rooms or expand their main room without planning applications. We will also continue to engage with the sector to ensure that other retail leisure and hospitality premises have planning flexibility—

• 27 Jan 2026 · Business Rates · Hansard source

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  We have implemented a wider support package for businesses across the country as a result of the changes to valuations coming in from 1 April, which unwind the valuations that were last looked at during the pandemic. Some 56% of properties will see their bills fall or stay the same in April. The easy thing to do would have been to kick the revaluation into the long grass and bury our head in the sand, but we wanted to make sure that businesses, particularly those that have seen their valuations fall, got the benefit of having up-to-date values post pandemic. Then, because we were aware of the changes coming down the track, we stepped in with £4.3 billion of support. It means that our net revenue from business rates this year will be broadly the same as was forecast before the Budget.

• 27 Jan 2026 · Business Rates · Hansard source

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  My hon. Friend is a proud and strong champion of the businesses in his constituency—the brewers, pubs and all those in the hospitality industry. I am sure that businesses in his patch would do well to feed in via him, as he is such a good representative.

• 27 Jan 2026 · Business Rates · Hansard source

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  No.