Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Maria Caulfield

Tuesday 11th December 2018 Commons Chamber

[The Chancellor of the Exchequer (Mr Philip Hammond)]

Budget 2018 announced our plan for the high street, which provides £1.5 billion of support to fund local areas as they make their high streets fit for the future. The plan includes a £675 million future high streets fund, planning reforms, a high streets taskforce, support for community assets and a cut by a third to the business rates bills of independent retailers for two years from April 2019, saving businesses almost £900 million.

[Maria Caulfield]

Although I welcome the measures that the Chancellor just mentioned—they are helping high streets greatly—the business rates system is currently not working for high streets. Will the Chancellor therefore consider a type of transaction tax that would level the playing field between online businesses and those based on premises, and also enable businesses such as Starbucks and Amazon to start to pay their fair share of tax?

[Mr Hammond]

My hon. Friend makes a point that has been raised on many occasions. There is concern about the way the business rates system works. In 2016, we conducted a fundamental review of business rates that agreed that property-based taxes were easy to collect, difficult to avoid and stable. There was no consensus around any replacement for business rates. My hon. Friend will know that separately the Government announced in the Budget a digital services tax to ensure that digital businesses pay tax that reflects the value that they derive from UK users.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Maria Caulfield

Tuesday 17th April 2018 Commons Chamber

[Mr Hammond]

I think that the right hon. Gentleman is being a little bit harsh on the unexplained wealth orders. The legislation has been in place for only a couple of months, and we will of course look at opportunities to use it. As for his challenge on the date for the registers, I will look into the matter, as he has asked me to do. I will then write to him to let him know the reason for the date that we have set, and whether there is any opportunity for it to be brought forward.

I think that we are all in the same place on this issue. We all want to ensure that London cannot be used as a route for dirty money—for the ill-gotten gains of regimes that are stealing from their people and channelling money offshore. It must be recognised that London is the world’s largest global financial centre, which presents us with some challenges, but we will continue the work.

[Maria Caulfield (Lewes) (Con)]

T4. High street retailers such as Toys R Us and Carpetright are closing branches because of the rise in online sales. What measures are Ministers taking to reduce business rates, which currently penalise property-based businesses to the advantage of online retailers?

[Mr Hammond]

My hon. Friend puts her finger on the significant structural challenge that we face. This country has a higher penetration of online retailing than any other major economy—we are at the cutting edge—but that, of course, has an impact on traditional retailing, and we have to expect that patterns of retailing will change. We have brought forward by a year the switch to three-year business rates reviews, and we have introduced a package of £9 billion of business rates relief, but we will have to consider this major structural challenge over the coming years as a nation.