Retailers: Business Rates

Baroness Neville-Rolfe Excerpts

Monday 8th April 2019 Lords Chamber

Asked by

[Baroness Neville-Rolfe]

To ask Her Majesty’s Government what steps they are taking to reduce business rates on retailers with physical premises so that they are charged less than those which trade online.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, business rates are an annual tax on non-domestic property. Bills are based on rateable value, which represents the annual rent the property would achieve if let on the open market, at a set valuation date, as assessed by the Valuation Office Agency.

[Baroness Neville-Rolfe (Con)]

I refer to my entry in the register of interests. Although anomalies remain, I am grateful for what the Government have done on small business rate relief, but it is not enough given the scale of the challenge in our towns and high streets. Because of the requirement to raise over £30 billion from business rates and the decline in the number of physical shops, the burden of rates is increasing for many retailers. Does the Minister accept that this is no longer appropriate, and that changes in taxation on business property should be carefully considered, perhaps with a freeze on the pernicious multiplier and a move to a framework that is more fit for the 21st century?

[Lord Bates]

My noble friend looked at this area when she was Commercial Secretary to the Treasury. As a result of that review in 2016, a number of changes were made that had a significant impact, such as doubling small business relief from 50% to 100% for those with a value less than £12,000, moving to more frequent revaluations, which were asked for, and moving the multiplier in inflation rates from the RPI to the CPI. All these things are making a difference. It is not that we cannot see the big problems on the high street at the moment, which is why the Chancellor announced his £1.6 billion package in the Budget of 2018.