Business Rates

Lord Naseby Excerpts

Wednesday 11th June 2014 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government whether they have proposals to reform or abolish business rates, particularly those applicable to the retail trade.

[Lord Naseby (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest, as 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, this Government have introduced a number of measures that have reduced business rates significantly. We have also published a discussion paper about ways to improve the administration of the rating system.

[Lord Naseby]

I thank my noble friend for that Answer, and in particular pay tribute to the way in which she has taken forward some of the earlier questions that I have asked on business rates. Is she aware that over the period from 2012 to 2016, business rates will have gone up by 18%? Thankfully, the production from corporation tax will have fallen by 18%. Against that background, is it not time that we had a complete reassessment of business rates and how they affect our high streets? Nowhere else in the world is our high street, or anybody else’s high street, affected by such a fixed-rate tax against, and regardless of, the trading that goes on in the retail scene.

[Baroness Stowell of Beeston]

My noble friend is a strong advocate for the retail trade and I am proud that this Government are a strong supporter of the retail sector. It is important for us not to see business rates in isolation. We have the most competitive tax system in the G20 for businesses. It is important that I emphasise to the House that the measures to reduce business rates for businesses announced in the Autumn Statement last year are worth £1 billion. Half of them were aimed specifically at the retail sector and town centres.