Pubs: Business Rates

Debate between Lisa Cameron and Anne Main

Tuesday 15th January 2019 Westminster Hall

[Mrs Main]

The hon. Gentleman makes an excellent point. Indeed yesterday, I took some representatives of pubs to meet the Minister with specific responsibility for this issue, and interestingly they were all from small independent pubs. The big pub chains can cross-subsidise in other areas if they are hit in this way; it is the small independent pubs, often run by one or two people who have put their lifeblood into those pubs, that are suffering. Those people are the ones whose voices need to be heard today. This cannot be the message that we are sending out as a Government. We must ensure that we are supporting small businesses, such as our smaller pubs, which drive our economy and play an important role in communities.

In high-value property areas such as St Albans, there is not a standard Government model that fits. The average house price stands at over £600,000: if a struggling business closes, it will quickly be snapped up by a property developer who sees it as a lucrative brownfield site ripe for housing, and often turned into an individual house or a pair of houses. That practice of turning commercial space into residential space is affecting businesses across St Albans with, for example, a staggering loss of office space over the past few years since the planning laws were changed. That is a double whammy for pubs. Businesses, particularly pubs, are struggling under the current system, and the new rate simply provides a cliff edge that penalises successful businesses in areas plagued by high property values. We must devise a system that helps all small businesses and pubs to thrive, not just the ones with low retail value.

The 2017 business rate formula for pubs uses a methodology for setting the rateable value based on a fair maintainable trade, which is a difficult phrase to interpret. The rateable value is driven mainly by the pub’s turnover. The calculation also takes into account property valuations in the area, which means that even small pubs, such as many of the pubs in St Albans that have been hit the hardest, can have a high rateable value because the area they are in has high property values. Sadly, the current formula does not take into account the many models of pub ownership that are often used by landlords and owners. That formula effectively penalises small business operators through an arbitrary taxation system that significantly reduces any profits a pub landlord can make while trying to pay staff wages and other costs.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank the hon. Lady for bringing this important debate before the House. We are at risk of losing our Glassford Inn, the only pub in its village, because of the issue that she has spoken about: the high rateable value of property in the area. It is the last business in the area, yet the rateable amount cannot be varied. Does the hon. Lady agree that this situation has to be changed to sustain these businesses over the long term?

[Mrs Main]

I absolutely agree with the hon. Lady, because I do not believe that what she has described was the Government’s intention. As I have said, the formula does not take into account the current models: some of these pubs are leasehold, and some are owned; there can be no bigger incentive to sell a pub than knowing it could be worth a heck of a lot more as a house than as a pub.

Backbench Business

Debate between Lisa Cameron and Anne Main

Thursday 8th December 2016 Westminster Hall

[Mrs Anne Main (in the Chair)]

Order. I call Dr Lisa Cameron.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

It is a pleasure to serve under your chairpersonship, Mrs Main. It is also an absolute pleasure to speak in such a profound—

[Mrs Anne Main (in the Chair)]

Order. I apologise; I am sorry. I call Fiona Bruce for the last few minutes before the Front-Bench speeches. Sorry about that.

--- Later in debate ---

[Dr Cameron]

Yes, I would like the Minister to explain in detail what the Government mean to do on the issue.

The hon. Member for Kensington (Victoria Borwick) gave a perspective from her constituency regarding antiques dealers and museums. She indicated that antiques dealers would welcome tough measures on the sale of ivory and are aware of the plight of the elephant population across the world. They advocate a ban on the export of tusks.

The hon. Member for Congleton (Fiona Bruce)—I nearly made my speech before she had even had a chance to speak—made a measured speech, as always. She emphasised the severe decline in the elephant population and spoke about the International Development Committee’s work, to which she has dedicated herself. She raised the important issue of jobs and livelihoods and asked that the Department for International Development does more to protect wildlife in the countries in which it is active.

This year, my two-year-old daughter saw an elephant for the very first time. It was an amazing experience that she will never forget, and I want future generations of children to be able to behold that sight. Time is of the essence. We must act now. If we do not, elephants could face localised extinction. In some African countries, including Senegal, Somalia and Sudan, elephants have already been driven to extinction. Communities across Africa are dependent on elephants for income through tourism, so saving elephants also means preventing poverty, sustaining livelihoods and promoting sustainable tourism.

Elephants are a key species in the ecosystem, and many other animals rely on them for survival. Elephants are nature’s gardeners. Plants and trees rely on them to disperse seeds. Elephants, as has been mentioned, are intelligent and emotional. They grieve for lost ones and feel fear and joy. We must stem demand for ivory from consumer countries. That is fundamental to the survival of the species. Up to 100 elephants are killed by organised criminals every day. In the past 10 years, 1,000 rangers have been killed by poachers.

[Mrs Anne Main (in the Chair)]

Order. Will the hon. Lady bring her remarks to a close? There are two Front Benchers still to go.

[Dr Cameron]

We need conviction rates and justice systems to be strengthened.

I ask that we protect and preserve elephants for the world. If the UK Government do not take steps to act on such a fundamental issue, we must question their fitness to represent the United Kingdom across the world.