Oral Answers to Questions
Lewis Atkinson Excerpts(1 month ago)
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Liz Twist (Blaydon and Consett) (Lab)
Lewis Atkinson (Sunderland Central) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
To breathe life back into Britain’s high streets, we are addressing antisocial behaviour and crime, rolling out banking hubs, stamping out late payments, establishing a licensing taskforce, empowering communities to fill vacant properties and reforming the business rates system. There is more to do and our forthcoming small and medium enterprise strategy will set out further steps.
Gareth Thomas
Before I had heard about the attractions of Warrington, I had heard about those of Consett. I was pleased to visit my hon. Friend’s constituency and meet many of the great businesses there just before Christmas.
We have introduced measures to fill empty properties, including high-street rental auction powers for councils, which can free up space for new businesses. We are also protecting vital services on the high street through the roll-out of banking hubs, with 170 opened so far. This week, we published our Green Paper on the future of the Post Office, which sets out our plans to do even more to provide banking services on high streets, which, again, I hope will help to bring more footfall on to the high street and help businesses such as the ones that she knows only too well.
Lewis Atkinson
In the last Budget, the Government committed to a fairer business rates system that protects the high street. Making sure online retailers pay a fair share of rates will help support businesses on the high street in Sunderland. Will the Minister update the House on the engagement and design work that his Department are carrying out so that that new fairer system can be announced in the Budget?
Gareth Thomas
The Chancellor announced last year that from the next financial year, 2026-27, we intend to introduce permanently lower tax rates for retail hospitality and leisure properties. A permanent tax cut will ensure that those businesses will benefit from much-needed certainty and support. Treasury colleagues have been engaging businesses on their proposals for a fairer business rates system. The Government plan to publish an interim report on their work and more detail will also be set out in the Budget in the autumn.
Budget Resolutions
Lewis Atkinson Excerpts(9 months, 2 weeks ago)
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Andrew Griffith
Either the Government do not know but should know, or they do know and should say.
The Budget also included the highest-ever increase in capital gains tax, and a reduction in business property relief. Just as with the family farm tax, that reduction is an attack on the family-owned businesses that dominate our high streets and industrial parks. The incentive to take risk, and to create and grow a family business with the objective of passing it on, will be fundamentally undermined. Some 75% of UK businesses are family run, and in aggregate they employ 50% of all workers in the economy. We are talking about decades of hard work, dedicated to building a legacy, and people creating an insurance policy for their passing. The so-called “loopholes” in inheritance tax that Government Front-Benchers talk about are legitimate tax policies, introduced by a Labour Government in 1976 to ensure that businesses were not broken up and devastated on the death of an owner, to the detriment of the remaining employees, workers, suppliers, customers, the wider economy, and even the Treasury, which would lose future tax take. This measure could be devastating for our communities and our high streets up and down the country.
It is not just Conservative Members who are sounding the alarm, though we may be doing it with a greater degree of passion. The chief executive officer of UKHospitality said that the increase in national insurance will undermine businesses operating at the margins and
“be a brake on growth”.
Family Business UK, which represents family-owned enterprises, has said that the Budget
“removes entirely any incentive for starting or running a family business.”
Lewis Atkinson (Sunderland Central) (Lab)
The hon. Gentleman will recall that in the 2022 spring Budget, the Conservative party increased national insurance for employers by 1.25%, and he supported that. Can he explain why he was in favour of it then but opposes it now, even though we have introduced increased employment allowances that counteract the change?
Andrew Griffith
I am pretty sure that at the time, the now Chancellor described the increase as a “jobs tax”, and that is exactly what this is. What we are seeing is not a need to balance the nation’s books on the back of a global supply chain squeeze, higher energy costs due to the war in Ukraine and the aftermath of covid, but a Government coming in with premeditated plans that they did not share with the British people, and setting the biggest-ever tax raid Budget in British history. That is an enormous difference, and business understands it; it can see through this Government.
One of the UK’s leading hospitality entrepreneurs is Luke Johnson, who runs Gail’s, which I believe some of my Liberal Democrat colleagues are rather keen on—they are the party of Gail’s. He said:
“It is heartbreaking that Britain’s proud record of innovation, flexibility and business success is being thrown away thanks to that old knee-jerk Labour instinct of taxing success.”
I agree.