Answer from Hansard

The Prime Minister

The hon. Gentleman raises an important point; let me address it. At the heart of this issue is that temporary business rate relief was put in by the last Government during the pandemic. That was the right thing to do, and we supported it, but it was temporary relief. That is now coming to an end, and obviously there is a revaluation that goes with it. What we are doing is permanently lowering the rates for leisure, retail and hospitality, but because of the changes, we are putting in £4 billion of transitional relief. That means there will be a cap on increases for small businesses, and we are finding that by adjusting the burden between them and the online giants. It is the temporary business rates coming to an end that we have to adjust through this policy.