Oral Answers to Questions

Seema Malhotra Excerpts

Tuesday 28th February 2017 Commons Chamber

[Jane Ellison]

I am extremely well aware of the points my hon. Friend makes, not least, as I say, because of the role I last held in government. We look carefully at all these things, particularly the issue of white cider.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

6. What fiscal plans he has to support small businesses.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The Government continue to support small businesses to access the finance they need to grow through the British Business Bank, which supports almost £3.4 billion of finance to 54,000 smaller business. In the autumn statement, I announced an additional £400 million of funding for the bank. We also reaffirmed our commitment to the business tax road map, including the permanent doubling of the small business rates relief and the extension of the thresholds for the relief, so that 600,000 small businesses—occupiers of one third of all business properties—will pay no rates at all.

[Seema Malhotra]

Federation of Small Businesses research says that over a third of small businesses expect their business rates to increase from 1 April. Small shops will be hit hard, while large supermarkets are set to gain. In Hounslow, the estimated 12% increase has led worried businesses to tell me that they expect to see jobs and investment cuts. The Chancellor would not want his fiscal decisions adversely to impact on growth and prosperity, so will he now commit to righting this wrong in his Budget? Will he also support Labour’s five-point plan to help small businesses through the revaluation?

[Mr Hammond]

I think the last thing small businesses need is any help from the Labour party. From what I have seen of Labour’s plans, that would be the final straw for most of them.

As we have said, we recognise that some small businesses are facing very substantial percentage increases, even where the actual amounts might not be very large, and that that can be difficult for businesses to absorb. We have committed to coming forward with a proposal that will address those who are hardest hit by that phenomenon.