Business Rates

Huw Irranca-Davies Excerpts

Wednesday 4th December 2013 Commons Chamber

[Toby Perkins]

There are strong arguments in favour of increasing the threshold from £12,000 to £15,000 to help businesses, but the great thing about Labour’s policy is that it will benefit businesses right up to £50,000. Government Members do not think that that is relevant to businesses, but the reality of our economy is that it is very relevant indeed.

Recent studies by the Association of Convenience Stores, which has a huge army of owner-shopkeepers among its membership, underline the point and tell the full tale. Small shopkeepers are among the hardest-working people in our country. The majority work over 50 hours a week, often many more, and their shops are a vital part of towns and villages in every community across the country. Some 55% of its members say that their average earnings last year equated to less than the minimum wage, yet the average store has a rateable value of £14,000. So go and tell them that the Government are taking action—tell them that another 1% off the corporation tax rate for big business is more important than cutting their business rates nightmare.

[Huw Irranca-Davies (Ogmore) (Lab)]

Does my hon. Friend agree that there is another way that we could help these small businesses, whether Travella, the outfitters shop on the square in Maesteg, or the Talgarth bakery? Taking action on business rates is one way—and imitation is the best form of flattery, I say, as the Government try to mimic, in a pale way, what we are doing. Another way is to freeze the energy costs, which would save those businesses around £5,000 on average.

[Toby Perkins]

Absolutely. My hon. Friend accurately predicts a future part of my speech, which I might none the less give Members the benefit of, as the facts on energy prices are worth repeating and this is an incredibly important point.

Not by accident, one-nation Labour is in touch with the issues that small firms are facing. We have gone out of our way to ensure that the voice of entrepreneurial Britain is not only heard, but spoken by Labour. Around 1,000 businesses attended Labour’s business reception this summer, and from Harlow in Essex to Stockton in Teesside, we have listened to thousands of firms of all sizes.

It is incredibly important to me as a former small business owner to be Labour’s small business shadow Minister. There is a wealth of private sector experience across the shadow business, innovation and skills team, but I am excited that Labour will fight the 2015 election with many more strong business voices standing for election in our colours. From internet entrepreneur Victoria Groulef in Reading West and educational solutions entrepreneur James Frith in Bury North to business owners such as Sophy Gardner in Gloucester and Emily Darlington in Milton Keynes, the face of Labour will reflect that enterprise spirit that embodies what one-nation Labour is all about.

--- Later in debate ---

[Brandon Lewis]

I am sure that people in Wales looked at the powers we gave local authorities here and thought that it is something they want to do in Wales. I say again that we are talking about something that local authorities already, under this Government, have the power to do.

This Government absolutely recognise that the wrecked economy we inherited means that businesses are facing challenging times. It has been our job, where possible, to ease pressure on businesses of all sizes, and to use their skills and expertise to drive our recovery and ensure an economy that is ripe for growth. Some 1 million private sector jobs have been created and the deficit is down by a third. Those are not just happy coincidences; they are achievements of this Government’s economic plan.

[Huw Irranca-Davies]

Would the hon. Gentleman care to pass judgment on whether an increase in corporation tax, particularly for multinationals, from 20%, where the Government are taking it, to 21% would make us globally uncompetitive? My reading is that a 21% rate would put us very much in the top league of the internationally competitive on corporation tax rates.

[Brandon Lewis]

Again, I simply do not agree with the hon. Gentleman that putting up taxes on businesses is a good thing for business—it simply is not.