Business Rates

Debate between Simon Hart and Ann Coffey

Tuesday 30th October 2012 Westminster Hall

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I shall make a helpful comment. Does the hon. Lady agree that, in some instances, local authorities are taking enforcement action against premises that have gone to appeal against their revaluation? It is crazy that there is a risk of their going out of business because of overburdening action by the local authority, pending the outcome of the appeal. Surely, local authorities could at least wait till the appeal is heard before going after the money.

[Ann Coffey]

The hon. Gentleman makes a good point. We must have systems in place that support local businesses and do not create extra barriers and difficulties for them. He is right about that.

Colliers International research shows that prime rents in Stockport fell by 29% between 2008 and 2012, so Stockport will not be a winner in this postponement; we are going to be losers. The winners and beneficiaries of the revaluation’s postponement will be those shopping centres where rents have risen, such as premium centres, which are still doing well. Shopping centres that need to be protected from “soaring tax bills”—I quote the Minister—are going to get hammered.

Mary Portas identified high levels of business rates as both a deterrent to investment and a disincentive to occupy physical shops. This policy can only add to the demise of our high streets. This is unfair and has been called the retail equivalent of the poll tax. I urge the Government to think again.

In addition to the high level of business rates, there are other important reasons why many high streets, particularly those in medium-sized towns, are struggling. They include major changes in shopping trends and habits, which have been accelerated by the economic recession, including fewer shopping trips, increased internet shopping, lack of investment and forward planning over the decades, and the continuing trend towards premium shopping centres. We also see a polarisation of consumers: those on low incomes struggle and shop in Poundland, bargain basement shops and charity stores, whereas those on high incomes continue to spend on designer-style goods in premium centres. There is a classic squeeze of middle shops and middle-sized shopping centres with smaller units.

We have to recognise that some high streets might never go back to being the destination of choice for major purchases, as nearby regional centres act as magnets, drawing shoppers from an ever-wider catchment area. We can, however, rebuild new and unique styles of shopping and experience, and towns such as Stockport need to have a distinctive shopping offer. We are looking at doing that based on the town’s cultural and heritage sites. We are one of the Portas pilots and we are looking at a culture-led renovation of our Underbanks and the Market Place, building on exciting national screening events at the Plaza, teenage and vintage market events and the High Peak beer festivals. We are doing all we can to attract independent retailers to the Underbank area, and some new specialist shops have opened.

Too many shops open and close, however; the economic environment is tough and we need retailers starting a new business to be successful and to expand. I therefore urge the Minister to take heed of the exhortations of the hon. Member for Stockport and other Members in all parties who are passionate about and interested in retail and to think again about postponing the revaluation exercise, freezing the business rates for next year. Please will the Minister give our entrepreneurs the space to take a chance and to build for future jobs and prosperity?