Oral Answers to Questions

Debate between Clive Jones and Gareth Thomas

Thursday 31st October 2024 Commons Chamber

[Clive Jones (Wokingham) (LD)]

In my constituency, the number of people shopping on our high streets has not returned to pre-covid levels, and we have lost anchor stores such as Marks & Spencer, and several banks. The Government urgently need to save our high streets, but the reduction in retail, hospitality and leisure business rates relief from 75% to 40% will come as bad news for thousands of businesses. When will the Government deliver a fundamental reform of business rates to save our high streets and end the penalising of productive investment?

[Gareth Thomas]

I am grateful for your guidance, Mr Speaker. While the hon. Member for Strangford (Jim Shannon) is popular, you are much more important.

I gently point out to the hon. Member for Wokingham (Clive Jones) that we have started the process of reforming business rates. We are introducing permanently lower rates for retail, hospitality and leisure from 2026-27. We have listened to businesses and kept business rates relief, and we are opening up opportunities for businesses to come forward with ideas for future reform of business rates.

--- Later in debate ---

[Clive Jones (Wokingham) (LD)]

Wokingham has one of the highest rates of business survival when compared with the averages for the south-east and Berkshire, but yesterday’s announcement that the Government will raise employers’ national insurance throws that into doubt. The hike is, plain and simple, a tax on jobs that will deal a hammer blow to our small businesses. What will the Government do to mitigate the impact on small businesses in my constituency and across the country?

[Gareth Thomas]

I say very gently to the hon. Gentleman that if he and his party are determined to oppose the measures we took in the Budget, including on employers’ national insurance contributions, they need to set out how they would fund the extra investment in the NHS, the investment in the automotive and aerospace sectors, and the measures to protect and raise living standards.