Economy Update

Afzal Khan Excerpts

Wednesday 16th June 2021 Commons Chamber

[Steve Barclay]

As my hon. Friend touched on in his question, the Government have committed to conclude the business rates review by autumn 2021. The review is considering the issues he mentions, including the fundamental changes to the administration of the business rates system and indeed the impact that has on businesses.

[Afzal Khan (Manchester, Gorton) (Lab) [V]]

It is wonderful to see cafés, restaurants, pubs and bars in my constituency reopening their doors. Local spots like Levenshulme Bakery, Mediterranean Café and Coffee Cranks in Whalley Range and the Sanam restaurants in both Longsight and Rusholme are well worth a visit, if the Minister would like to join me some time. Despite doors being open again, the hospitality sector is now facing a mountain of debt. Forcing businesses to pay this back while many are still struggling to turn a profit is unfair and could well harm the recovery, so does the Minister agree that a flexible repayment scheme tied to profits is now necessary?

[Steve Barclay]

First, I am very grateful to the hon. Member for the kind invitation, and I hope one day to be able to join him in what I am sure are fantastic local businesses to which he is quite right to draw the House’s attention. The key is the support that those businesses have had so that they are able to bounce back and to be open now. On the issue of debts carried by business, part of the design of the Chancellor’s schemes such as bounce back loans has been to allow additional time for those loans to be repaid so that they do not become an undue burden on those businesses.