Kate Green
Main Page: Kate Green (Labour - Stretford and Urmston)
Mr Pickles
The hon. Gentleman should not be mocked for not understanding this, because the misconception is a common one. If London values went down enormously, we would have to adjust the multiplier to ensure that the same amount of money was in the system as whole. Initial estimates of the multiplier suggest that a massive increase would be required, so those very places that have seen a drop in rents—a drop in rateable values—could find themselves paying much more through this process. That is the very nature of it. He may recall that when a revaluation took place last time the values had gone up so high that there had to be a small reduction in the multiplier to compensate. Our feeling is that the multiplier would be likely to have to go up considerably, which is why we have taken the unusual decision of trying to do the revaluation against a more stable position.
Kate Green (Stretford and Urmston) (Lab)
None the less, businesses in my constituency have expressed dismay at this announcement. What analysis has the Secretary of State, or his Department, carried out on the geographically distributional spread of the impact of this measure?
Mr Pickles
We cannot definitively model geographical spread. All we can do is rely on our officials’ best professional judgment and initial reports—I stress that they are initial—from the Valuation Office Agency. Big changes are likely to be seen, even within an area. We can see what has happened in the City. We recognise that banks and a lot of financial institutions are likely to see a colossal drop in their rates bill, but compensating that will be enormous increases in other parts of London to pay for it. So the hon. Lady’s constituents should not feel aggrieved. They should feel that we have taken a sensible decision, and we hope that we can get broad consensus on it.
The measures I have outlined today will help Britain compete in a global world. They will support local firms, local jobs, local housing and local regeneration. They will remove the unnecessary red tape that holds our country back and they will ensure that sustainable development goes hand in hand with environmental safeguards and democratic checks and balances We are speeding up the system, cutting excessive regulation and giving employers a helping hand to compete on the global stage.
We are being true to the aspirations that brought the coalition Government together. We are taking the bold action needed to fight for Britain’s future and ensure that we succeed in a changed and uncertain world. We are promoting economic growth, rebalancing our economy, backing the industries of the future and allowing Britain to compete in a modern, 21st-century world economy. I commend the Bill to the House.