Business Rates: Revaluation

Lord Bishop of St Albans Excerpts

Wednesday 1st March 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, there are quite a few questions there. The point that the noble Lord made about the high street and other forms of business activity has some merit, but it is quite separate from the issue of revaluation, which is done at arm’s length. We are open to looking at options, but obviously it will take time and we could not expect to do anything on this before the Budget. As the noble Lord will be aware, the Treasury did look at this in 2015 and, having consulted widely, concluded that the present system was best. However, I appreciate that globalisation, the internet and the vitality of the high street are factors that have to be weighed in the balance, so we are happy to look at this. The noble Lord asked a few other questions. If I may, I will respond to him in writing on those and put a copy in the Library.

[The Lord Bishop of St Albans]

My Lords, will the Minister inform the House whether Her Majesty’s Government would look at the feasibility of setting the threshold of business rate relief at a local level, thereby protecting small independent businesses, many of which are now at risk, especially in high-value areas?

[Lord Bourne of Aberystwyth]

My Lords, the right reverend Prelate makes an important point. In a sense, of course, localism is already fed in because the valuation is done locally and should reflect local conditions. As I have indicated, small businesses, with up to £51,000 in rateable value, get the small-business rate; and many small businesses—600,000 in the current rollout from April this year—will be exempt. But the local factor is taken account of by the fact that there is a local valuation that reflects local rental values.