Member

The noble Baroness, Lady Pinnock, asked why the cap is based on the £500,000 threshold, which I thought I touched on previously. The Government are clear that the changes to the business rates system must be fiscally sustainable. That is why we intend to ask those businesses with the highest-value properties—less than 1% of all properties—to pay more. When the Treasury looks at this in three years’ time, for 2026-29, it will be able to see how the system is working. Unfortunately, the Bill does not have the power to set the multiplier rates. It is not for MHCLG but for the Treasury to set the rates. I will come back to the point about impact in a moment.