Budget Resolutions

Debate between Angela Rayner and Connor Naismith

Monday 2nd November 2026 Commons Chamber

[Angela Rayner]

Our plans are about making sure that mayors work with local authorities. In fact, in my area in Greater Manchester, we have seen the combined authority have really good pulling power, with our economy doing better than other areas, so we want to see that across the whole nation.

That is why the Cabinet statement on rewiring the state committed to the financial sustainability of local authorities, and this Budget is the next step towards that. The upcoming local government finance policy statement will set out our next steps alongside the rewiring the state delivery plan. Good growth is growth that we can see and feel. We need to draw a line under a decade of drift during which the public realm was seen as sideshow to politics—[Interruption.] The hon. Member for Hinckley and Bosworth (Dr Evans) should know about sideshows.

Our high streets are where we catch up with friends for a coffee, and those businesses provide solid jobs at the heart of our communities. Those small moments of joy give us real hope, and that is why our strategy is giving hope back to the high streets. New powers, new funding and changes to the business rates system will provide much-needed relief for thousands of cafés, pubs and high street shops. We are freezing all retail, hospitality and leisure bills in real terms to protect them from above inflation increases for the next two years, and we are lifting the small business rate relief threshold for qualifying properties.

[Connor Naismith (Crewe and Nantwich) (Lab)]

My constituents will strongly welcome the decision to extend small business rate relief to many more businesses in the Crewe and Nantwich constituency, but they will also welcome the decision to remove small business rate relief from adult gaming centres and vape shops. Will my right hon. Friend join me in saying that this is an important step to incentivise the kind of businesses we want to see and disincentivise those we do not?

[Angela Rayner]

My hon. Friend is absolutely right. We are removing business rate relief for vape shops and adult gaming centres, and giving local authorities stronger tools to tackle business rates avoidance. At the Budget, we announced an extra 20% business rate cut for pubs and all but the largest live music venues. We will also introducing a general anti-avoidance rule for business rates at the earliest opportunity, and expanding what legal costs local authorities can claim when they are unsuccessful.