Baroness Primarolo
Main Page: Baroness Primarolo (Labour - Life peer)
Madam Deputy Speaker (Dawn Primarolo)
Order. As a large number of Members wish to take part in this afternoon’s debate, there will be a six-minute time limit to start with on all contributions by Back-Bench Members. We will have to review the time limit during the course of the debate. It might be necessary to reduce it further.
Mr Betts
Absolutely. The economy is not rebalanced and some areas are doing better than others. The areas that are doing less well have businesses that are struggling and that is why revaluation would have been important.
The Minister says that a revaluation would somehow affect businesses adversely. No, it would not. A revaluation should be a zero-sum game as far as businesses are concerned. The Minister said that there was no benefit to the Treasury. Every previous revaluation has had dampening put in to protect firms that are likely to see a significant increase in their rates. There has always been a net cost to the Treasury as a result of any revaluation, particularly when there are big changes—as there could well have been if a revaluation had been carried out. The cost of any revaluation would have been borne not by businesses but by the Treasury, and I suggest that that is why the Government did not go ahead with it in the end. It was another stealth saving by the Chancellor to try to ensure that they did not have to put in the costs of protecting firms from large increases. At the same time, of course, he has caused additional costs for firms that are struggling in the less prosperous parts of the country, which has been the real disadvantage of not going ahead with revaluation.
I will also be critical of the previous Labour Government, who did not go ahead with a revaluation of council tax. In the longer term, delaying valuations has had major disbenefits. There might be short-term advantages, as it does not cause problems for the Government in explaining to some people why their taxes have gone up, but in the medium and longer term it is always a disaster to put off revaluations, because when they are eventually handled they become even larger, more difficult to deal with and more difficult to explain. That is the simple reality.
If we are thinking about the retail sector, we must consider the greater benefits that the postponement of revaluation allows for out-of-town shopping centres. When we consider revaluation and the whole system in future, we must consider the fact that the value of rates for out-of-town shopping centres, compared with those for smaller shops in the high street, is not fair at all. Were we to have a revaluation now, I would suggest that we took account of the fact that an increase in empty properties on the high street would likely see the valuation of shops there go down. If the planning system works as the Government intend and we have a town and city centre-first policy, the constraint on future out-of-town developments should put a premium on the existing developments and cause a relative increase in the rateable value of such properties. Postponing the revaluation has had a disadvantage for the high street and an advantage for out-of-town centres, and we should take account of that.
There are a lot of issues for the Government to consider. We need a longer term reform of business rates and to go back and consider revaluation, as it was not fair to postpone it. If there is a problem and we are to have some change to the business rates next year, let us make it a cut not—
Nick de Bois
On a point of order, Madam Deputy Speaker. In the excitement of being called to speak so early, I forgot to notify the House that my wife runs a business, which obviously pays business rates, that was formerly my company. I want to put that on the record and I am grateful to you for allowing me to do so.
Madam Deputy Speaker (Dawn Primarolo)
I am grateful to the hon. Gentleman, as I am sure the House is too. Transparency is always a good idea in the House and that will be shown in the record, so I thank him for his point of order.
Madam Deputy Speaker (Dawn Primarolo)
Order. I am cutting the time limit to five minutes, from now, for each Back-Bench contribution. The wind-ups for this debate will start at 7.46 pm. I hope that we will be able to fit everybody in, but we may not.
Mr Peter Bone (Wellingborough) (Con)
On a point of order, Madam Deputy Speaker. Have you been made aware that a Minister is to come to the House and make an urgent statement, given that Sky News has been reporting all evening that tomorrow’s autumn statement will refer to a 1% cut in departmental budgets other than those that are protected? It is not an “if” or a “maybe”, but a definite. It is not the first leak of this kind, and the Chancellor must be mortified. I wonder if he will come to the House to announce a leak inquiry.
Madam Deputy Speaker (Dawn Primarolo)
I have not seen the Sky broadcast, and I have not been notified of any such inquiry, but I am sure that the hon. Gentleman is right, and the Chancellor will indeed be mortified. Mr Speaker has made it absolutely clear that any Government announcement should be made to the House first. I can be of no further help this evening, but the Leader of the House is present, and I am sure that he has noted the point that has been raised.