Commercial Property

Debate between John Stevenson and Mark Pawsey

Wednesday 17th November 2010 Westminster Hall

[Mark Pawsey]

I thank my hon. Friend for his contribution. That point has been well made. Many years ago, I recall setting up my own business and occupying exactly the kind of property that would, by now, have been demolished. In my business’s early days, secondary, inexpensive space permitted it to get started with relatively low overheads.

In addition to demolishing existing building, we will end up with no new building. My concern is that, as we emerge from recession, there will be no new industrial units for our businesses to occupy as they grow. That will have a significant effect in delaying our country’s ability to emerge from the current recession. I am particularly concerned about the plight of small businesses and small private investors.

[John Stevenson (Carlisle) (Con)]

For the record, I would also like to declare an interest in accordance with the register. Is the localism agenda not part of the solution, in that it should be up to local authorities individually to decide what should be charged and what percentage of relief should be given? That would reflect market conditions in different parts of the country.

[Mark Pawsey]

My hon. Friend makes an excellent point, which I am sure will be taken up by the Minister in his response. We are moving into an era of localism and it should be appropriate for individual authorities to make their own decisions on the matter, rather than having legislation imposed on them from on high.

Returning to the case of Mr Summers, the position of small private investors and small businesses contrasts significantly with that of larger, more established property companies that can absorb this cost in the round and are better able to respond. Of course, the business community fully accepts that the coalition Government need to take decisive action to deal with the country’s deficit, and that any proposals such as those articulated by my hon. Friends this morning need to stand up against many other calls on the public finances at this difficult time. However, I contend that the consequences of the abolition of empty property rate relief on a significant proportion of the country’s commercial property estate means that the matter should be given urgent and special attention.