Business Rates

Andrew Griffiths Excerpts

Wednesday 4th December 2013 Commons Chamber

[Andrew Griffiths (Burton) (Con)]

It probably will not surprise you to know, Madam Deputy Speaker, that I rise to talk about a specific type of small business, namely the pub. As chairman of the all-party beer group it is, of course, my role to promote and support the needs and aims of our brewing and pub industries. I think we all recognise that 80% of pubs in our constituencies are small businesses. On average, they employ 16 people. They are the lifeblood of our community—we meet there to socialise, have fun and hold public meetings—but they are also important drivers of the economy locally. They are important businesses in our communities.

I am glad that the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Great Yarmouth (Brandon Lewis) is present, because he is both the pubs Minister and the Minister for the high street. I think that few in this House have done more than him to stand up for and represent our pubs and to understand the issues that affect them. He has been a fantastic advocate for the industry in other Departments. I think that this is the most pub-friendly Government for many years, but there is more to do, because our pubs, as small businesses, are struggling.

Pubs are important not just for our communities, but for our high streets, which are changing and adapting. I think the Minister could do three things to support and help these vital small businesses in our communities. Something we could all do for small business Saturday is support a small business by having a pint of British beer in our local pubs in our constituencies.

[Yasmin Qureshi]

Or an orange juice.

[Andrew Griffiths]

Or an orange juice, of course.

The first thing the Minister could do relates to small business rate relief, which my hon. Friend the Member for Bury St Edmunds (Mr Ruffley) has spoken about. Small business rate relief was introduced in 2005 and is hugely important for pubs. It is a very good thing and was extended to 2013-14 by the Chancellor in the 2012 autumn statement. It offers 100% relief for small businesses and is worth £1,000 a year to pubs. For pubs that are struggling and trying to cope with changes in the economy, £1,000 a year is hugely important. Sixteen thousand pubs across the country benefit from small business rate relief and that is worth £27 million to the industry in total. The Minister could pick up the telephone to the Chancellor this evening to ensure that he listens not only to me but to all the hon. Members who have signed early-day motion 599. Let us extend small business rate relief for pubs in our constituencies to 2015, or permanently, as my hon. Friend the Member for Bury St Edmunds has suggested.

My second point is about discretionary rate relief. As the Minister will know, local authorities can offer it in relation to assets of community value, a fantastic thing brought in by this Government. Assisted by changes that came in earlier this year, local authorities can claim 50% of the discount back through the Treasury and the Department for Communities and Local Government. Will he do all he can to ensure that local authorities across the country take advantage of the scheme by offering it to their small businesses and helping pubs in their areas? I urge all right hon. and hon. Members to talk to their local authority about implementing the scheme.

My final point is about flexibility in relation to business rates. For commercial premises, business rates are assessed on square meterage, but for pubs, they are determined on turnover. Under previous legislation, if a pub’s turnover changed materially—“materially” is the important word—a concession could be offered. I urge the Minister to consider reintroducing such a provision to offer some relief to pubs that have a big change in turnover for the worse.

[Toby Perkins]

The hon. Gentleman is making an important point about the significance of business rates for pubs. I am sure that he knows this from his perspective, but will he give us an idea of how many pubs have a rateable value of more than £50,000? I would think that there are very few, so virtually every pub would be able to drink to Labour’s business rate cut for all businesses below that £50,000 level. Will he support that policy for the sake of British pubs?

[Andrew Griffiths]

I am always prepared to listen to anything that might support the great British pub, but as the hon. Gentleman is from the party that introduced the hated beer duty escalator and the smoking ban, he needs to think long and hard about what he can do to support British pubs.

[Damian Collins (Folkestone and Hythe) (Con)]

Does my hon. Friend agree that as Labour’s policy is barely worth more than £1 a day to businesses to which it will be offered, they would have to be pretty small beer indeed to get any value out of it?

[Andrew Griffiths]

I completely agree with my hon. Friend’s point. I also agree with those made by the hon. Member for Sheffield South East (Mr Betts) and, interestingly, by the hon. Member for Corby (Andy Sawford) on the speed of appeals. That issue is important because two thirds of pubs have appealed their business rates, and half of those decisions are still outstanding. Such delays can have a massive impact on small businesses that are really on a knife edge in terms of profitability and sustainability.

As I have said, the Minister is a passionate supporter of the great British pub and wants to lead a regeneration of our high streets, so will he take on board my three small points, pick up the phone to the Chancellor and do something to support our pubs?