Business Rates: Revaluation

Baroness Rebuck Excerpts

Wednesday 1st March 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

Yes, my Lords. I should say, however, that the revaluation system has been a constant of life since the 1988 legislation, and three revaluations were held under the Labour Government on exactly the same basis as this one, at arm’s length. But the noble Lord is right: some businesses, particularly larger businesses in London, have been hard hit. My right honourable friend the Secretary of State for Communities and Local Government is speaking with the Chancellor and looking at possible options, and we can expect an announcement in the Budget.

[Baroness Rebuck (Lab)]

My Lords, does the Minister agree that sometimes we can actually learn from our European neighbours? France exempts 500 bookshops from business taxes, recognising them as cultural assets in their local communities. But our Government want to clobber our bookshops with rates rises that are, on average, 100% in London and up to 50% for a small independent bookshop in Lincolnshire. Meanwhile, large retailers’ distribution centres get massive cuts. I declare an interest as a publisher. Can the Minister confirm that he will look at the impact of this regressive tax on the one in four of our bookshops now threatened with closure?

[Lord Bourne of Aberystwyth]

The noble Baroness makes a powerful case. As I have already indicated, small businesses are set to pay no business rates at all, and we have increased the number of small businesses by moving the threshold to a rateable value of £51,000. Therefore, any business under that will not be paying business rates at all. However, the point is well made and, as I say, there will be action in the Budget for businesses that got steep rises.