Business Rates

Debate between Geoffrey Clifton-Brown and Bob Stewart

Tuesday 2nd April 2019 Commons Chamber

[Sir Geoffrey Clifton-Brown]

I entirely agree with my hon. Friend, and I am sure that my right hon. Friend the Minister will have heard the plea from those of us who represent rural areas, where the one or two ATMs in our market towns play a very significant part.

[Bob Stewart (Beckenham) (Con)]

Does my hon. Friend have any idea of the logic behind an ATM on the outside wall of a bank having to pay business rates when those that are inside do not? It beats me! Perhaps there is a reason, but I do not understand what it would be.

[Sir Geoffrey Clifton-Brown]

I understand that there are two reasons. The first is that the Valuation Office Agency can get away with saying that an ATM on the outside of the building is, in the jargon, a different hereditament from the main building on which it sits. The second argument that is given in the official explanation is that ATMs are often not run by the same company as the building on which they sit, and that as it is a different company, it can be rated as such. Those are the official explanations, but I am sure that my right hon. Friend the Minister, who is far more expert in these matters than I am, will be able to give us a better one.

Returning to the £51,000 and the question of discretionary relief as opposed to allowances, the Minister knows that this is the core of my speech. It was the core of my speech last October, and it is the core of my speech today. This £51,000 is still a discretionary relief. While the majority of local councils have now pledged to provide the resources for their local businesses to benefit from this change, there are some that, regrettably, have not been forthcoming with their support of this measure, either by delaying their decision to implement it or by putting systems in place that require businesses to apply for the relief, firmly putting the onus on businesses to take time out from their day job to claim back money that is rightfully theirs. That means that businesses in those areas are being disadvantaged.

Of course this still does not resolve the complexity, and I believe that simplicity is always the key. We all know that small businesses are under increasing and unfair pressure from out-of-town retail parks and online retailers, and I am sure that Members here tonight will have lots of examples of that. For example, for every £1 in business rates that our small high street operators are taxed, the big online and out-of-town retailers pay significantly less, averaging around 16p. We can immediately see the competitive disadvantage for high street retailers, compared with the large out-of-town retailers and big online organisations.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown]

My hon. Friend, along with most of my hon. Friends, if not every single Member who is in the Chamber, is passionate about defending small businesses. I can see that she is shortly going to make a speech to support her small businesses—perhaps very shortly; I cannot possibly foretell.

[Bob Stewart]

Will my hon. Friend give way?

[Sir Geoffrey Clifton-Brown]

Yes, because my hon. Friend has been very patient.

[Bob Stewart]

As a small factual correction, when my hon. Friend said “5.7 small and medium-sized businesses” he meant 5.7 million. That is a small point, and I know it was a slip of the lip.

[Sir Geoffrey Clifton-Brown]

Indeed it was a slip of a lip. The figure of 5.7 million small and medium-sized businesses is terrific, and shows the entrepreneurialism in this country, which is why our economy is doing so well and why we have such full employment at present.