Businesses: Business Rates

Baroness Wheatcroft Excerpts

Monday 13th January 2014 Lords Chamber

[Baroness Stowell of Beeston]

The noble Lord will know that one of the changes that we have introduced is to allow local authorities to retain 50% of all the business rates that they raise. This is so that they can enjoy and benefit from business activity in their area. We have also changed the law so that local authorities are able to introduce their own discounts, and since April this year central government is funding 50% of those discounts. We think this is the right thing to do to make sure that there is the incentive there for new businesses and local authorities to receive the benefit from that activity.

[Baroness Wheatcroft (Con)]

My Lords, many of the shops in secondary retail locations will never return to retail. Given the figures that we have seen on the growth of online shopping, it seems inevitable that they will remain empty. Does my noble friend agree that the sensible thing is for local authorities to encourage the ground-floor units, as well as those above, to turn into residential accommodation?

[Baroness Stowell of Beeston]

My noble friend is right to highlight the changes in the way that consumers are shopping and spending their money. We have introduced, as she has acknowledged, some flexibility to high streets and are currently consulting on additional measures that will allow towns and high streets to adapt even further to this new world.