Business Rates: Revaluation

Lord Kennedy of Southwark Excerpts

Wednesday 1st March 2017 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what action they propose to take in the light of the concerns expressed about the increases in business rates facing some businesses.

[Lord Kennedy of Southwark (Lab)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I refer the House to my interest in the register.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, a significant majority of businesses will end up paying less as a result of the business rates revaluation and changes to relief. The generous reliefs we are introducing mean that 600,000 small businesses are set to pay no business rates at all. We have also confirmed £3.6 billion of transitional relief to help those companies facing increased bills. We are looking at the hardest-hit businesses ahead of the Budget.

[Lord Kennedy of Southwark]

Mary Portas has described the valuation as madness. The chief executive of Sainsbury’s, Mike Coupe, has called for the revaluation to be abandoned. The Federation of Small Businesses is against it. In Southwark, the borough I grew up in, one business in the north of the borough is facing a 50% increase in its business rates—which equates to £66,000 per annum or, to put it another way, three jobs at risk. Will the noble Lord agree to speak to his colleagues in the Treasury to impress upon them the concerns expressed and to make it clear that real substantive action needs to be taken in the Budget to deal with this problem and protect the high streets? Tinkering around the edges will not do.

[Lord Bourne of Aberystwyth]

Yes, my Lords. I should say, however, that the revaluation system has been a constant of life since the 1988 legislation, and three revaluations were held under the Labour Government on exactly the same basis as this one, at arm’s length. But the noble Lord is right: some businesses, particularly larger businesses in London, have been hard hit. My right honourable friend the Secretary of State for Communities and Local Government is speaking with the Chancellor and looking at possible options, and we can expect an announcement in the Budget.