Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Geoffrey Clifton-Brown

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

I think the last thing small businesses need is any help from the Labour party. From what I have seen of Labour’s plans, that would be the final straw for most of them.

As we have said, we recognise that some small businesses are facing very substantial percentage increases, even where the actual amounts might not be very large, and that that can be difficult for businesses to absorb. We have committed to coming forward with a proposal that will address those who are hardest hit by that phenomenon.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

In Stow-on-the-Wold in my constituency, the actual business rates payable by Tesco, which is five minutes’ walk from the centre, is £220 per square metre, whereas a delicatessen in the centre of the town will pay £500 per square metre. Does not my right hon. Friend think that the system of rating valuation needs to be re-examined?

[Mr Hammond]

The rating system is what it is; it reflects the rental value of properties. I readily acknowledge that in an economy that is changing shape rapidly, where the digital economy plays a much larger role and where some of the biggest businesses are not based on bricks and mortar, there are some very significant challenges for us, which we need to look at. In the short and medium term, business rates play a vital role in providing revenue to the Exchequer—and from 2020, of course, they will be used wholly to support local authorities.