High Street Businesses

Greg Smith Excerpts

Wednesday 26th February 2025 Westminster Hall

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate my hon. Friend the Member for Stockton West (Matt Vickers) on securing this important debate. He is right: high streets are the beating heart of communities and local economies across the whole of the United Kingdom. I see that in my own constituency, with the wonderful mix of retail, hospitality and services on high streets such as Wendover, Princes Risborough and Great Missenden, as well as those important smaller retail parades in villages such as Prestwood and Haddenham. They really are, as others have said, the beating heart of our local economies and communities.

Unlike Labour, the Conservatives want businesses to keep more of their hard-earned money to grow and invest. In Government, we delivered the biggest long-term business tax cut in modern British history, to the tune of £11 billion per year. We froze the small business multiplier, saving an average shop £1,650 a year, and extended the retail hospitality and leisure relief for a year, which directly supports high street businesses. We took a third of properties out of business rates completely through small business rate relief and froze the tax rate for the last three years. We introduced a 75% business rate relief for retail, hospitality and leisure, meaning that the business rates of the average pub in England were £6,650 lower than they would have been.

Meanwhile, breaking their manifesto promise not to increase the amount of cash raised by the levy, this Labour Government are delivering a stealth tax rise of £900 million this year and £2.7 billion next year through higher business rates. Rates paid by thousands of high street businesses will more than double next year as a result. Unlike Labour, we in Government cut national insurance contributions for businesses. We abolished an entire class of NICs and cut the NIC top rate from 9% to 6%. Labour’s first Budget launched a £25 billion tax raid on British business, breaking its manifesto promise and imposing a jobs tax. It has increased employer national insurance contributions, clearly breaking commitments made throughout its general election campaign. That jobs tax will increase the cost of employment to our high street employers and everyone else by £900 for the average worker.

Labour’s Budget nearly halved business rates relief for retail, hospitality and leisure, more than doubling the business rates of eligible businesses. Atlas Group estimates that the reduction from 1 April of the business rate discount for retail, hospitality and leisure firms in England from 75% to 40% in the ’25-’26 financial year will mean an average 140% rise in business rate bills for more than 250,000 high street premises in England. The average shop will now see its business rates bill spiral from £3,589 to £8,613 next April for the ’25-’26 year. The average business rate bill for pubs will increase from £3,938 to £9,451. Restaurants will see their average bill rising from £5,051 to £12,122.

In short, this Labour Government have

“complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets”;

not my words, but those of the commercial director at the British Independent Retailers Association. Labour looked business owners in the eye and told them it would be on their side, and at the first opportunity it imposed a slam dunk of measures to make it impossible to grow, to invest or even, in some cases, to survive. The Labour Government have zero credibility on this issue now. They are not the champions of our high streets that they want to proclaim themselves. The nation took them at their word, and their word has proven to be a gross misrepresentation.