Non-Domestic Rating (Multipliers and Private Schools) Bill

Joshua Reynolds Excerpts

2nd reading
Monday 25th November 2024 Commons Chamber

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

I grew up helping my mum on the shop floor of small gift shops, and my memories of the wonderful work that she did to build that business and the staff she employed is a real benefit to my life. I also saw how hard she worked and how hard things got. She went down from four shops to one, then came across the classic problem of whether she was able to keep her shop open and battle with online retailers. The costs went up, business rates were too much, and she decided to close and go online.

Frankly, I am tired of us not taking support for small businesses seriously and making a change. This Government had an opportunity to make a difference, but they have squandered opportunity when it comes to business rates reform. I see the impact on businesses in my high streets. I have the privilege of representing several magnificent high streets, in Tring, Berkhamsted, Harpenden, Wheathampstead and Redbourn, but businesses there are struggling yet again. Michelle from Graze Life told me time and again about the impact the cost of business rates had on her business; eventually, she closed her high street shop down. I spoke to Peter from the Oakman Group, a booming business that started in Tring in 2007. The company is a rising star and has received prizes for being one of the best places to work for employees, but Peter now says it is on the edge of extinction. He employs 1,200 people but he says the Budget, including business rates changes, will have an impact of up to £2 million on his business, so he will look to close many of his premises.

[Mr Joshua Reynolds (Maidenhead) (LD)]

My hon. Friend mentions several businesses in her constituency that will be impacted by the changes. I spoke recently to a small restaurant owner in my constituency. They have six restaurants across the south of England and they say that the business rates changes, plus other Budget measures, will cost their business £150,000 just to do what they are doing today. Does she agree with me that that will not encourage such businesses to invest in the UK, open new restaurants and help grow the economy, which we all want?

[Victoria Collins]

Absolutely. That is the message I am hearing again and again. Another business owner in Tring said that they would love to open on the high street but they just cannot afford it. The broken business rates system is affecting our businesses, the people who work there and our communities, which are losing out on fantastic local businesses.

The Minister talked about building a confidence to invest, but business rates directly tax capital investment, rather than taxing profits or fixed stock of land. That needs to change. I reiterate the Liberal Democrats’ call for absolute reform of business rates and the introduction of a commercial landowner levy. That will tax the land value of commercial sites, not productive investments, and boost that productive investment, support our local businesses and help communities and local employers.

Many families have written to me about the changes to charitable rate relief for private schools. I support the calls from the Government Benches to improve all state schools, but parents decide to send their children to private schools for many reasons, including special educational needs, supporting their children’s specialist skills or because of bullying. We have a choice about how we raise that money. Instead of taxing the banks, is it fair to be taxing the education of other children to raise that money?