Brian Binley
Main Page: Brian Binley (Conservative - Northampton South)
Toby Perkins
I will make a little more progress, then I will let the hon. Gentleman come in.
British businesses will face a choice as we approach the next election between a Tory party that makes hollow gestures of this sort and a Labour Government who will offer them vital respite. Labour’s business rate cut is even more important than that; this is an important symbolic moment because a potential party of government is at last saying that enough is enough on business rates. That comes at a time when research by the British Council of Shopping Centres shows that Britain pays the highest rate of commercial property tax in the EU.
By contrast, we are set to have the lowest corporation tax in the G20 by 2015. Labour understands the importance of a competitive corporation tax rate. It might interest Conservative Members to learn that the biggest increase in corporation tax in the past 40 years was introduced by—I cannot hear the correct answer—Edward Heath in 1973. [Interruption.] It is true. In fact, no Labour leader has increased the main rate of corporation tax since then. For comparison, at the zenith of Thatcherism, in 1987, the main rate of corporation tax was 35%. The big cuts under the Labour Government saw it fall to 28% under my right hon. Friend the Member for Edinburgh South West (Mr Darling).
Mr Brian Binley (Northampton South) (Con)
Having been inspired by Margaret Thatcher to start two businesses, and having seen those businesses grow to now having almost 300 employees, but having suffered massively under a Labour Government, may I tell the hon. Gentleman that small business does understand what Labour does and knows what happens when we have a Labour Government? Things become much more difficult, and it becomes much harder to survive.
Toby Perkins
That is one viewpoint, but that of someone who has not seen an opinion poll recently, I think. Let us not hear anything from Conservative Members to suggest that Labour is the party of corporation tax rises, as history tells us that that is not the case.
Mr Brian Binley (Northampton South) (Con)
Thank you, Madam Deputy Speaker, especially for telling me that my time has been cut short.
It is a pleasure to follow the hon. Member for Rochdale (Simon Danczuk), who made some telling points. I lost him somewhere along the line, but in the main he made constructive points. Sometimes it befits the elderly to give a history lesson to those who follow, and it is often a salutary exercise. We would not be where we are today if there were not a load of history behind all the stuff that we are now facing. That seems to have been forgotten by some of the younger Members on the Opposition Benches, so I will help them. I am going to elucidate and explain why we are where we are today. We had a structural deficit in the previous Government from 2002 onwards—[Interruption.] They don’t like it up ‘em. We saw the destruction of the most effective private pension scheme in Europe, and the sale of 25% of our gold reserves at the most ludicrously laughable low price. We arrived at a £160 billion—[Interruption.] The trouble is they do not like it. We arrived at a £160 billion deficit by borrowing £1 in every £4 we spent. No wonder we are in a spot of trouble. No wonder the Government are struggling to find their way to those uplands of economic well-being, and by golly they are doing it. I want to pay tribute to the Government for the way in which they have created 1,400,000 jobs, 400,000 new businesses and the fastest growing economy in the western world. Opposition Members can put their heads in their hands, but those are the facts and they need to face up to them.
Now let me talk about business rates. Sadly, the Government have not been able to do as much as they wanted to do because we were left with an appalling legacy. It would befit the Opposition to recognise that fact just a little bit more. In truth there is a problem with business rates; they do need reforming, but no political party and no Government in this country have ever wanted to face a revaluation, and that goes for that lot over there as well as our lot, and they need to remember that.
Business rates are causing hardship for businesses, and preventing others from growing. They bring in £25 billion to the Exchequer. The Federation of Small Businesses claims that 30% of small and medium-sized enterprises are paying more in business rates than they are in rents, so there is clearly a difficult problem. We need to recognise that together and the history that led up to it. If we all did that, perhaps the people out there would think that we were a little more adult.
We could see an increase in business rates of some £242 million, unless the Chancellor announces a decision tomorrow. That could mean 6,000 shops and 8,000 jobs disappearing. It is a real problem, particularly when we consider that 40,000 high street shops remain empty across the country. Local authorities need more to help them revitalise and grow the sector. I have heard some very credible schemes from Opposition Members, and I welcome them. In my constituency, we have a scheme called Northampton Alive in which 21 major projects are linked to creating 2,016 jobs for those not in education, employment or training by 2016, and to a people’s forum, so they can take ownership of how the town is changing—a new station, a new bus interchange and a new road to the west. Yes, we have got down to business in Northampton, and we have got down to ensuring that our businesses receive rate relief. We have the highest figure—£1.5 million—in the country, and I applaud Northampton council for doing that.
We all need to recognise that something needs to be done about business rates. I hope that my party does it very quickly, because the truth is that the Opposition did not do anything when they had the opportunity, and they should remember that fact.