Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 29th November 2022 Commons Chamber

[Kevin Hollinrake]

I thank my hon. Friend for his recognition of the small businesses in his constituency. He is absolutely right: there is no greater force behind the supply side of the economy than small businesses, which are essential to prosperity and productivity. He is absolutely right to champion their cause, and we should all join him in that endeavour.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

There has been some talk about business rates. I appreciate what the Minister says about needing a proper plan. Businesses in my constituency tell me that business rates are their big bête noire and that reforming and replacing them would make their lives a lot easier and their survival more certain. Will he give some indication of the Government’s thinking, and of the timescale in which they might be looking at the matter? Labour is proposing a radical reform.

[Kevin Hollinrake]

Well, Labour is proposing a radical reform, but we cannot quite work out whether it will scrap business rates or reform them. There have been mixed messages among Labour Front Benchers—indeed, among the shadow Chancellor and the Leader of the Opposition—so we are not quite sure what Labour’s policy will be. We are certainly not sure how it would replace the £25 billion to £30 billion of revenue. I would really like to understand that.

This is a thorny issue, because if we scrapped business rates the taxpayer would have to find that huge amount of money by some other means. The right thing to do right now is to see businesses through this very difficult time with the kind of concession that we have made, such as the £13.6 billion, rather than making irresponsible and in my view undeliverable promises to completely scrap business rates.