Business Rates

Baroness Hanham Excerpts

Monday 25th November 2013 Lords Chamber

[Baroness Stowell of Beeston]

I think the Institute of Directors has already disagreed with that approach. We consider that it would be robbing Peter to pay Paul because all businesses benefit from a reduction in corporation tax. It is also worth reminding the noble Lord that this Government have given local authorities powers to grant their own business rate discounts. The local government sector now retains 50% of the business rates that are collected. If local authorities decide to reduce business rates further in their area, since April of this year the Government have been funding 50% of those costs.

[Baroness Hanham (Con)]

Does the Minister agree that while business rates may be one factor in the decline of the high streets, there are a number of others? Does she further agree that this Government have already frozen the revaluation of rates, which was a help? Finally, does she agree that other factors in the high street include rents, the mix of shops, the support of local people and, perhaps most importantly, online shopping, which it is now estimated will account for 30% of all business transacted over the Christmas period?

[Baroness Stowell of Beeston]

This Government have done a lot to support local communities in adapting their high streets to the changing behaviour of consumers. My noble friend is right to highlight the increase in online trade. The other point worth making about things we are doing differently is that we changed some of the previous Government’s planning guidance which pushed up parking charges and had quite a negative effect on town centres. We are looking to do more in this area and will consult on that soon.