Business Rates Relief: High-street Businesses Debate

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Department: HM Treasury
Wednesday 4th June 2025

(2 days, 22 hours ago)

Westminster Hall
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Ashley Fox Portrait Sir Ashley Fox (Bridgwater) (Con)
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It is a pleasure to serve under your chairmanship, Ms Jardine. I thank my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson) for securing this important debate.

Our high street shops and pubs are at the heart of our communities, yet many are threatened by big increases in business rates. Our high street businesses are already contending with Labour’s new tax on jobs. The hike in national insurance makes it more expensive to employ someone who works in a shop or a pub on our high street. The Employment Rights Bill will further increase costs, hitting small businesses with new regulations that make it harder and more expensive to operate. In that context, the decision to cut the retail, hospitality and leisure business rates relief from 75% to 40% is wrong.

I met recently with Mr Paul Davis of Styles Menswear in Bridgwater. His business rates have gone up from £3,000 a year to £9,000 a year. That new cost, before we can even consider Labour’s new jobs tax, puts his livelihood at risk. He will not be alone. Paul’s business has the double misfortune of being based in Eastover, where he has had to contend with extensive and lengthy roadworks. In Liberal Democrat-controlled Somerset, we have had a particular problem with various roadworks being scheduled at the same time and harming local businesses. It seems that the Liberal Democrats know little and care less about the damage that they are causing.

The roadworks in Eastover started in October with a partial road closure. As if that were not bad enough, the council then decided to impose a full road closure in January, which is now set to continue until at least September. Ironically, it is on the council’s “celebration mile” project, although to date there has been very little for local businesses to celebrate. The project has proved a hammer blow to many local businesses, which have seen footfall collapse: footfall in Bridgwater is down 400,000 in the past 12 months, mostly caused by the incompetent way in which Somerset council has handled the project.

I believe that those businesses deserve our support. Businesses disproportionately affected by council actions should have the right to claim rates relief. Will the Minister consider that proposal? The situation in Eastover is now desperate, and I fear that in the coming months we will see more shops and businesses closing their doors for good.

It seems that this Labour Government, with the able assistance of Liberal Democrat councillors in Somerset, are set on destroying those businesses. The truth is that, despite the Government’s claim to be going for growth, everything that they are doing appears designed to achieve the opposite. I say to the Minister, “Businesses in Bridgwater are suffering. They need your help now.”

Mike Martin Portrait Mike Martin
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On a point of order, Ms Jardine. It seems that the hon. Gentleman is confused and in the wrong debate. This is a debate about business rates, but he spent his entire time talking about local government sequencing of traffic works.