Business Rates
Debate between Nick de Bois and Toby Perkins
Toby Perkins
Absolutely. The statement by the British Retail Consortium is incredibly powerful because its members are telling it every day how important this issue is. That is why it is important that we see serious action.
Toby Perkins
I will make a little more progress, then I will let the hon. Gentleman come in.
British businesses will face a choice as we approach the next election between a Tory party that makes hollow gestures of this sort and a Labour Government who will offer them vital respite. Labour’s business rate cut is even more important than that; this is an important symbolic moment because a potential party of government is at last saying that enough is enough on business rates. That comes at a time when research by the British Council of Shopping Centres shows that Britain pays the highest rate of commercial property tax in the EU.
By contrast, we are set to have the lowest corporation tax in the G20 by 2015. Labour understands the importance of a competitive corporation tax rate. It might interest Conservative Members to learn that the biggest increase in corporation tax in the past 40 years was introduced by—I cannot hear the correct answer—Edward Heath in 1973. [Interruption.] It is true. In fact, no Labour leader has increased the main rate of corporation tax since then. For comparison, at the zenith of Thatcherism, in 1987, the main rate of corporation tax was 35%. The big cuts under the Labour Government saw it fall to 28% under my right hon. Friend the Member for Edinburgh South West (Mr Darling).
Toby Perkins
I will crack on a bit and then I will happily take a few more interventions. I am conscious of the time.
Toby Perkins
Because he has been so persistent I will give the hon. Gentleman the chance to intervene and then I will crack on. I have a feeling we will now hear an intervention of considerable importance.
Nick de Bois
I am grateful for the hon. Gentleman’s introduction, but he might like to ask his constituents whether or not my intervention is important. He complains that councils do not have the money to offer rebate—which, incidentally, is subsidised up to 50% by councils for offering a discount—but his own council in Chesterfield has failed to collect £4 million in council tax. If it made a bit of effort, perhaps it could get some of that back to business rates.
Toby Perkins
That is a disgraceful point given the cost of living crisis facing many of our people who are desperately struggling. The idea that it is the council’s fault if it is struggling to raise money from people in my constituency is absolutely remarkable.