Business Rates

Lord McKenzie of Luton Excerpts

Wednesday 11th June 2014 Lords Chamber

[Baroness Stowell of Beeston]

There is no difference in treatment in terms of the business rate between businesses on the high streets and those located outside town centres. As I mentioned, the Government have made sure that their support is very much focused on the retail sector. We have made other measures, particularly the £1,000 discount for those with rateable values of below £50,000, which is aimed very much at small businesses.

[Lord McKenzie of Luton (Lab)]

My Lords, does the noble Baroness agree that the best way to support small businesses would be to prioritise the cutting of business rates in 2015 and freezing them in 2016, as we have proposed, rather than provide a corporation tax cut to some 80,000 businesses? That would help 1.5 million small businesses. Is the noble Baroness aware of reports that identify the negative effects of the Government’s decision to delay the next business rate revaluation? In particular, due to the delay, struggling retailers in the north of England are now subsidising luxury retailers in London’s West End.

[Baroness Stowell of Beeston]

As the noble Lord knows, we decided to postpone revaluation to provide certainty and stability. The Valuation Office Agency suggests that 800,000 premises would have seen a real-term increase in their rates at a 2015 revaluation had we carried one out. This would compare to only 300,000 seeing reductions, so I suggest the decision that we made was the right one.

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[Baroness Stowell of Beeston]

The Labour Party policy paper to which I think my noble friend is referring suggests a range of measures. I can be very clear on one measure with which we disagree: a measure to introduce business rates for farmland and farm buildings, which would certainly lead to an increase in the cost of living by forcing up food prices.

[Lord McKenzie of Luton]

The noble Lord might care to know that the paper to which he refers is not Labour Party policy or part of the Labour Party’s policy review. That is another fiction from Members opposite.

[Baroness Stowell of Beeston]

I am glad to hear that the noble Lord is not intending to introduce business rates for farmers. I am sure they will be very pleased to hear that.