Business Rates: High Street Retailers

Lord Naseby Excerpts

Tuesday 17th January 2017 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government, further to the responses to their consultation on business rates revaluation, whether they have any proposals to reduce the impact on 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 declare an interest as a member of my family has a shop on a high street.

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

My Lords, business rates are based on valuations carried out independently by the Valuation Office Agency and it is right that Ministers do not intervene in that process. Nearly three-quarters of all businesses will see no change to, or a fall in, their rates bill from April thanks to the 2017 revaluation, with 600,000 businesses set to pay no business rates at all.

[Lord Naseby]

My Lords, I am grateful to my noble friend for giving me the position of Her Majesty’s Government’s Ministers. Nevertheless, the core of the high street is badly affected in many parts of our country. There was an article in the Times on Saturday about Southwold—not a huge place—where a local baker’s rates are going up from just over £4,000 to £14,000. Against that background, will my noble friend look at the possibility of revising the proposals where there is an increase of up to 15%? The rules at the moment suggest that there can be no appeal. Secondly, where there is a small, or any, reduction, can that reduction be paid in April and not phased in? Thirdly, when the upratings are done, can we move from RPI to CPI earlier than 2020? Finally—

[Noble Lords]

Too long!

[Lord Naseby]

Finally, my Lords, is it not time for a whole root-and-branch reappraisal of this form of business tax?

[Lord Bourne of Aberystwyth]

My Lords, as I have indicated, most businesses will see a fall in their business rates. Those subject to increases will find that of course they will be phased in over time, to take just one area which my noble friend touched upon. That will pay for those seeing a reduction, which will also be phased in over time, as is required by law under the Local Government Finance Act 1988.