Department for Communities and Local Government

Priti Patel Excerpts

Tuesday 26th March 2013 Commons Chamber

[Priti Patel (Witham) (Con)]

Following last week’s Budget debate, I welcome today’s opportunity to highlight some key business-related issues affecting my constituency and my constituents.

The House will be well aware that Essex is a county of entrepreneurs, as there are many successful small businesses. That is why the first item on my list is Her Majesty’s Revenue and Customs, which continues to act as a barrier to businesses and many small firms in my constituency. To put this into some kind of context, HMRC has spent over 10 years relentlessly pursuing and seeking to punish my constituent, Mr Philip Wright. His case relates to a complex issue surrounding tax paid in the construction industry. Despite Mr Wright losing his business, being unwell and being of very limited means and having previously won an initial court hearing, HMRC continues to drag this case on, persecuting my constituent. HMRC has made many errors, yet it seems to be determined to secure a precedent-setting victory over Mr Wright at a further court hearing later this year.

This case shows how HMRC has targeted its efforts on the defenceless and on easy targets, while letting larger firms off the hook. It also shows once again how inept HMRC has been. My constituent had built up his own business and spent years doing the right thing. It is about time that HMRC did the right thing. I urge the Government, and particularly the Treasury Minister responsible for HMRC, to leave Mr Wright in peace. Today is quite a significant day, as we have to ask ourselves whether the official who presided over so many failures at the UK Border Agency is the right person to fix HMRC, with all its backlog of cases and problems.

The next business example from my constituency highlights problems with the Valuation Office Agency. The VOA, as it is fondly known, is an executive agency of HMRC, and it has spent the past three years sitting on a firm’s business rate re-evaluation appeal. In June 2010, the business requested a reduction on the basis that the rateable value applied was

“incorrect, excessive, contrary to law and a disproportionate reflection on the change in rental values in the locality”.

The VOA has sat on its hands for three years and done nothing. This is yet another example of bureaucracy not understanding how businesses operate in the real world, as a result of which I understand about 250,000 further appeals in similar instances are outstanding. I urge Ministers to take action to end this bureaucratic shambles and to press the VOA to get its act together.

Last week’s Budget has been positively welcomed by business, which is why I urge Ministers and the Government to press local councils to unleash local businesses from business rates and to tell local authorities to use their new powers to reduce rates and take a more flexible approach to local business taxation. My constituent, Duncan Clark, is an outstanding local entrepreneur who converted a redundant out-house building into a cookery school, creating two full-time jobs. He has taken a risk to set up that business and has a great “can do” attitude—the type of attitude that this country needs to grow into a more prosperous future. He should be congratulated on what he is doing; instead, of course, he faces a £6,000 bill for his rates. I hope that the Government will urge local councils to use their powers over business rates to foster a competitive spirit of business enterprise in this environment. That would help start-ups and help business men such as Mr Clark.

Many of the problems that I have highlighted demonstrate that the public sector needs to have a greater understanding and appreciation of the private sector. If those public bodies engaged more constructively with the private sector, they would enhance their own understanding. A great example of that happened in Witham town, when Essex county council listened to a body called Witham Industrial Watch, whose business members monitor criminal activity on our industrial sites. The county council was on the verge of taking away the street lighting on the industrial estate, but Witham Industrial Watch made a persuasive case to the council. I pay tribute to the council and to the cabinet member for highways for realising that it made business sense to work with Witham Industrial Watch to get the right outcome.

I look forward to hearing the Government’s response. Let me take this opportunity to wish you, Mr Deputy Speaker, and all the staff of the House a very pleasant Easter recess.