Business Rates

Lord Naseby Excerpts

Monday 25th November 2013 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government what steps they will take in response to calls from the Confederation of British Industry, the British Chambers of Commerce and the British Retail Consortium for a reduction in and reform of business rates, particularly in relation to high street retailers.

[Lord Naseby (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I give notice that a member of my family works in the retail trade.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Stowell of Beeston) (Con)]

My Lords, the Government keep all taxes, including business rates, under review and in doing so take account of all views expressed by representative bodies and the retail industry. While I am not privy to any measures that my right honourable friend the Chancellor of the Exchequer might be considering ahead of the Autumn Statement, noble Lords might wish to be reminded that this Government have taken significant steps to support business, including, for example, doubling small business rate relief.

--- Later in debate ---

[Lord Naseby]

My noble friend is right to remind the House of what the Government have done so far. Nevertheless, is she not aware that the broader high street, often owned by individuals or families, has faced the most difficult four years certainly in this century and probably since the last war? Is she further aware that the one element that does not seem to change is the business rates, which each year go up and up and are now well above rentals, which is the first time in history that that has happened? Will she therefore look at some short-term action, perhaps freezing the business rate for the year 2014-15, otherwise I fear that shops, particularly in the north and the Midlands, will shut up shop? If action is taken, that will probably mean more investment, more recruitment into the retail trade and will probably be cost-neutral.

[Baroness Stowell of Beeston]

I am grateful to my noble friend for raising this important matter. Of course I recognise the difficulties faced by retailers around the country. I regret that I am not able to announce any new tax cuts today—my right honourable friend the Chancellor might have something to say if I did. He has a proven record in supporting business. It is worth reminding noble Lords that by 2015 corporation tax will have fallen eight percentage points to 20%. I also know that he is listening hard and considering all options before deciding what steps to take next towards reducing the deficit and stimulating growth.