Dan Tomlinson MP: speeches

Speeches

• 27 Jan 2026 · Support for Businesses · Hansard source

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  We announced a 5p reduction in the multiplier on top of the 7p or thereabouts reduction that was taking place as a result of the revaluation more broadly. That is a £900 million transfer of underlying rates liability away from the smallest high street businesses towards the online giants and the largest properties. When the Liberal Democrats and the Conservatives had the chance, they kept the tax rates the same. We have introduced significant reform, and we started the work of that reform at the Budget. Of course we will continue our conversations in the months ahead.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  The Government will have more to say a bit later today when it comes to pubs and the support that the Government can provide for them. We knew that the revaluations would be implemented from 1 April, and that is precisely why we came forward with a significant package of support for all businesses across the economy. We introduced significant reforms to lower the multipliers for businesses like the pubs that the hon. Member mentioned.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  I have got the idea, Mr Speaker! The key thing to note here is that there is a significant difference between the change in the rateable value and the change in the business rates. This year, we have stepped in to cap the increases for bills at £800 for those coming into the system for the first time. For most high street businesses, the increase will be 15%, while the very largest will see increases of 30%. Those are the steps we have taken. When the Liberal Democrats were in government, they chose to increase VAT on businesses up and down the country.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  Yes, happily.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  I am very fond of my constituency neighbour, who has the privilege of sharing a part of Barnet with me. There will be news this afternoon—I am just trying to find my words, Mr Speaker.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  I hope the microphone picked that up. We will make further announcements this afternoon specifically focused on pubs, but I understand that there are businesses across the economy that will have seen increases in their rateable values since the pandemic. That is precisely why we have stepped in with our support package.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  Conservative Members do not get it, because when they were in government, they set out plans to remove the temporary pandemic rates relief overnight in 2025. That would have seen an increase of 300% in business rate bills overnight for businesses on the high street. We have taken a different, fairer and more proportional approach, phasing out the pandemic relief over a slower time period and extending it into this year.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  There are a number of questions on this topic, and I am sure there will be more this afternoon when I make a statement to the House on a package of support in relation to business rates, with a particular focus on pubs. As previously announced, we are introducing a support package worth £4.3 billion to support rate payers who are seeing increases in their business rates.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  I thank my hon. Friend for the work that she is doing to champion salons and the beauty industry in her constituency and elsewhere. She will know that VAT is a broad-based tax; in fact, it is our third largest revenue raiser, raising £180 billion last year. That is vital revenue that pays for our public services. There are lots of issues in relation to VAT, including the differential treatment depending on how salons decide to set themselves up and pay their employees. Those are important issues, and we will consider tax changes in the usual way in the run-up to future Budgets.

• 27 Jan 2026 · Support for Businesses · Hansard source

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  I thank my hon. Friend for her representations on behalf of businesses and constituents in Sheffield. One of the important things to note about the business rates system is that there are many smaller businesses on our high streets that pay no business rates at all. One in three businesses continue to benefit from small business rate relief and an additional 85,000 benefit from reduced bills as that tapers. At the Budget we announced an additional two years of small business rate relief for those businesses that expand into a second property. This will be helpful for small and independent businesses, and will support them to grow.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  The hon. Member is right that business rates policy is devolved. I am in conversation with the Governments in Scotland and Wales about a number of changes to taxation policy that were announced in the Budget, and I will of course be happy to continue those conversations. We need to ensure that we continue to support these vital businesses up and down the country, which is why the Chancellor set out the package of support at the Budget.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I thank my hon. Friend for her question and for the engagement that she has carried out with businesses in her constituency, as a strong representative of the businesses and people of Tamworth. The Government set out some significant reforms in the Budget. We lowered the tax rate that is paid by businesses on our high streets by 5p compared with what it would otherwise have been. That means that the tax rate paid by businesses on our high street is a quarter lower than that paid by the very largest businesses, which can afford higher taxes. That is why we rebalanced the system, transferring £1 billion of extra tax revenue from the largest businesses to high street businesses in my hon. Friend’s constituency and across the country.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  The process for businesses that are not satisfied with the valuation provided by the Valuation Office Agency is to go through the “check, challenge, appeal” process. In my role as the Minister with responsibility for His Majesty’s Revenue and Customs, I will of course be doing all I can to make sure that the performance of the VOA is as good as it can be to help businesses get through that process. That is very important, not least given that we are seeing a rebound in the values of many businesses across the country following the pandemic.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  One of the things that the Government are doing to support businesses up and down the country is bringing back economic stability. Under this Government, interest rates have been cut six times, which will reduce borrowing costs for businesses small and large, and we are doing all we can to boost living standards, so that people have more money in their pockets to spend in hospitality businesses. We have seen faster increases in wages in the first year of this Government than we did in the first 10 years under the Conservatives.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I must say, I am very jealous that my hon. Friend has over 100 pubs in his constituency; I have only 27 in mine, and I have not made it round all of them yet. He is right to highlight the importance of the employment and job opportunities that can be provided by the hospitality sector, with around 2 million people working in it. Many people’s first job is in hospitality, helping them to get their foot on the career ladder and progress in their careers. That is why the Government provided significant support for hospitality businesses at the Budget, and it is why I will continue to engage with my hon. Friend and other Members on the issue of business rates and other matters where we can support our high streets.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  The Government back small businesses and our high streets. We want to do all we can to continue to support businesses up and down the country. That is why we announced significant reforms to business rates at the Budget, making sure that we could have a permanently lower multiplier for high street businesses and providing significant support worth £4.3 billion over the coming three years.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  One of the challenges with the questions I am being asked by Opposition Members is that they seem to be suggesting that the Government should not have gone ahead with the post-pandemic revaluations. Those revaluations were set in train by the previous Government. I do not know about the hon. Member, but I think that, if businesses in his constituency or mine have seen a decrease in their rateable values since the pandemic, for whatever reason, it is right that the system is updated to reflect their post-pandemic values. That is what we have done. He cites a particular example. Of course there will be businesses that see increases in their rateable values, and that is precisely why we have stepped in, with the Chancellor announcing £4.3 billion of transitional support at the Budget last year.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  Hospitality businesses are the cornerstone of our communities, providing life and vibrancy to high streets up and down the country. The Government are committed to continuing to support their growth and their success. We value the work that employees in that sector do—I believe that around 2 million people work in hospitality across the country—and the work of business owners who seek to grow and expand their hospitality businesses. Precisely because we value their work and the work of businesses on the high street, we fundamentally redesigned the transitional relief scheme, so that it takes the 40% reduction in bills as its jumping-off point. That reduction is a result of this Government’s decision to extend the pandemic-related relief. The previous Government had not costed or funded that, and they would have ended it overnight if they had won the general election in 2024.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I totally agree with my hon. Friend that we need to avoid the situation we saw for 14 years, when 7,000 pubs closed under the Conservatives, with about 4,000 closing in the first five years when the Lib Dems were in coalition with them. This Government will do all we can to support pubs, hospitality businesses and our high streets, which is why we set out a really strong set of proposals at the Budget, as he mentioned, including £4.3 billion of support.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I do not know what the current Government position is on whether pubs are allowed to sell takeaway pints, but I hope that would be allowed in Shropshire if I were to visit. However, I have about 30 pubs in my north London constituency, and I have many conversations with publicans both locally and in my role as Exchequer Secretary.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  The right hon. Gentleman raised the issue of small businesses. It is worth nothing that a third of properties pay no business rates at all, as they receive 100% small business rate relief, and that a further 85,000 will benefit from reduced bills as this support tapers away.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I thank my hon. Friend for her sustained and important engagement and advocacy on behalf of high street businesses in her constituency, from hospitality venues such as cafés and pubs to independent shops. She has explained to me really clearly the impact of various changes that previous Governments and this Government have announced on the businesses in her constituency. I will continue to engage with her and other strong advocates of the hospitality industry on this and other important issues that affect our high streets.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I thank my hon. Friend for her question and for her continued representation for the small businesses in her Bournemouth constituency, where I know there is a vibrant and growing hospitality and leisure sector. We have implemented reforms to the system to rebalance business rates away from the high street and towards the online giants. I look forward to continuing to engage with her and other Members of Parliament on business rates, other issues and other steps that this Government can take to continue to support the high street and businesses in her constituency.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  I thank my hon. Friend for her leadership of the Treasury Committee. At the Budget, we set out the first significant fundamental reform of the business rates system that we have ever seen. For the first time, there is a very significant divergence in the tax rate paid by businesses on our high streets and by the very largest businesses, including online giants. The tax rate is around 13p lower for high street businesses than it is for the largest businesses. That is a 25% reduction, which cost around £1 billion. It is a £1 billion reduction for businesses on the high street, paid for by higher taxes on those who can most afford it.

• 19 Jan 2026 · Business Rates: Retail, Hospitality and Leisure · Hansard source

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  We considered before the Budget the matter of businesses being brought into business rates for the first time. We set out at the Budget the supporting small business relief scheme, so that businesses that are paying no business rates at the moment but which are coming into business rates for the first time will have their increases capped at £800.