I have long called for support for our city’s small and independent businesses, taking action to make sure their voices are heard in Westminster and decisions made by Ministers ensure our local business community flourishes.
That’s why I wanted to set out directly why the new Prime Minister and Government are making changes to business rates affecting local businesses which are to be welcomed.
Businesses in Portsmouth have been clear that the business rates system is placing particular pressure on many pubs, community venues and social spaces that play an important role in local areas.
That’s a message I have heard loud and clear from my visits to local businesses, meetings I’ve held with local traders and the recent hospitality roundtable I hosted with the Minister in Parliament.
That is why the Government has announced a new business rates relief for pubs, clubs and live music venues. The relief is designed to provide targeted support to valued community assets which contribute significantly to local economies, high streets and social life across the country.
This measure builds on the Government’s wider programme of business rates reform and reflects our commitment to ensuring support is directed where it can have the greatest impact.
The changes will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
The Government will also crack down on businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules.
The Government is consulting on measures to make online marketplaces more responsible for preventing non-compliant sellers from avoiding their tax obligations and further detail will be set out in due course. Subject to consultation, revenue raised from these reforms will be reinvested in improvements to the business rates system.
Ministers recognise that hotels face a distinct set of challenges and will be disappointed not to be included within the relief announced by Government. I appreciate that hotels make a vital contribution to our city and to all local economies, tourism and employment across the UK.
That’s why I welcome the Government reviewing how hotels are valued for business rates. The review is being carried out by the Government, with extensive engagement from valuation experts, businesses and their representatives. The review will report in time for any decisions that follow to be implemented for the 2029 revaluation.
This week’s announcement is focused on pubs and other community venues. However I will continue to engage with stakeholders across a range of sectors, including hospitality, as Ministers consider the future of the business rates system and options for supporting businesses through it.
I will be taking further action on these issues over the summer.
Stephen Morgan MP
