Oral Answers to Questions

Debate between Stephen Morgan and Kevin Hollinrake

Thursday 18th May 2023 Commons Chamber

[Kevin Hollinrake]

The hon. Lady raises an important point. The first thing we will do for any business is to ensure that the economy is growing, as it is. We are seeing much higher rates of growth than anticipated by many, and we are cutting the costs of doing business by halving inflation, which again is incredibly important for business. In the short term, we are providing support with £13.6 billion of business rate discounts. We put £23 billion into energy discount schemes, too. We also have a big programme, across government, to try to get 9 million people who are economically inactive back to work.

[Stephen Morgan]

Portsmouth’s fantastic small and family-run businesses tell me that after the Tories crashed the economy, they are struggling with rising business rates, supply chain issues and soaring energy costs. Why does the Minister not just adopt Labour’s plan to scrap business rates and replace them with a system fit for the 21st century?

[Kevin Hollinrake]

We would all like to reform business rates. When people in my constituency hear about Labour’s plans to scrap business rates, the question I always get is, “Where is the money coming from?” Business rates raise £22 billion in England alone. I have heard Labour’s plans to scrap business rates. Which taxes will be increased to make up that shortfall? That is the question. We are reforming business rates to ensure that small businesses pay less, and providing short-term discounts. Labour cannot simply wipe away £22 billion without telling us where the money is coming from.