Business Rates Relief: High-street Businesses

Christine Jardine Excerpts

Wednesday 4th June 2025 Westminster Hall

[Several hon. Members rose—]

[Christine Jardine (in the Chair)]

Order. I remind hon. Members that they should bob if they wish to be called in the debate, and ask them to keep their speeches to within four minutes so that everyone can get in.

--- Later in debate ---

[Mike Martin]

On a point of order, Ms Jardine. It seems that the hon. Gentleman is confused and in the wrong debate. This is a debate about business rates, but he spent his entire time talking about local government sequencing of traffic works.

[Christine Jardine (in the Chair)]

That is not a matter for me at the moment.

--- Later in debate ---

[James Wild]

Absolutely. That is the sort of risk taking and job creation that we want to see across all our constituencies around the country, and it is that opportunity that the Government are crushing through their decisions.

The hon. Lady’s example illustrates that the impact of these changes is already being felt, but we have been warned that worse is to come. The British Property Federation has found that business rates changes could cause a £2.3 billion hit to the economy, jeopardising 20,000 jobs. When businesses face higher costs, the alternatives open to them are higher prices, job losses or closures—boarded-up shops become inevitable—and young people and, in particular, part-time workers lose out on opportunities as a result.

The Local Government Association has also raised concerns about the financial impact that these reforms could have on local councils. It has urged the Government to introduce a transitional mechanism to ensure that local council services are not put at risk. I would be grateful if the Minister could respond directly to the LGA’s concerns.

Sadly, these are not stand-alone reforms; they come on top of the £25 billion jobs tax; the Employment Rights Bill, which will add £5 billion a year to costs; and the family farm tax and business tax. As if it were playing a game of Buckaroo!, Labour is loading cost after cost on to businesses and there will be a reaction. Half the major retailers surveyed by the British Retail Consortium said that the Employment Rights Bill will lead to job cuts. How does the Minister expect companies to absorb these much higher costs on top of business rates and higher national insurance?

Last month, the shadow Chancellor, my right hon. Friend the Member for Central Devon (Sir Mel Stride), visited Beales, which was holding a “Rachel Reeves closing down sale” as it wound down its business after more than 140 years. That is just one of 200,000 businesses that have closed under this Government.

The future of our high streets should be a priority for any Government. Policies should be designed to help them to thrive, rather than burdening entrepreneurs and job creators. Extraordinarily, the Prime Minister said earlier this week:

“I don’t think you can tax your way to growth.”

Yet that is precisely what the Government have done with the £25 billion jobs tax. They are choking growth, costing jobs and hitting businesses that our communities rely on.

Before the election, the Labour party promised that it would scrap business rates completely. In power, it simply ditched that pledge—another broken promise. It is little wonder the British Independent Retailers Association said:

“For all the government’s rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite.”

It is time for the Government to start listening to businesses and change course.

[Christine Jardine (in the Chair)]

I call the Minister, James Murray.

[Hon. Members]

Hear, hear.