Business Rates Relief: High-street Businesses

Suella Braverman Excerpts

Wednesday 4th June 2025 Westminster Hall

[Suella Braverman (Fareham and Waterlooville) (Con)]

I thank my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson) for calling this important debate and giving us a chance to raise issues on which we largely agree. Businesses are the lifeblood of our economy, the foundation of our communities and the building blocks of our country. I am proud to stand as a pro-business, pro-enterprise, pro-innovation Member of Parliament.

The changes introduced by the Government, notably in the autumn Budget, to reduce the retail, hospitality and leisure relief introduced by the previous Conservative Administration from 75% to 40% will decimate the support available to independent small businesses, and will undoubtedly lead to closures, higher prices for consumers and less footfall across our vibrant high streets and shopping centres, particularly in my constituency.

The examples that stand out for me in Fareham and Waterlooville include national retailers. Following the announcement in the Budget, Sainsbury’s in Waterlooville announced the closure of the café, as part of 3,000 job losses across the country. There is also the Canvas Printing Company, which stood proudly in Fareham high street for 16 years. It recently announced its closure, citing online shopping, reduced footfall and, particularly, business rates and staff costs as having contributed to that decision. Whether we are talking about a large business giving jobs and opportunities to local people to earn a living, or a small business where people have scrimped, saved and sacrificed for decades out of a passion to provide a service and generate revenue, those are devastating examples.

However, I want to talk about a larger project in my constituency: the regeneration of Waterlooville shopping centre. I am sure everybody here knows about Waterlooville, but for those who do not, its history is so rich. British soldiers returning from Waterloo are said to have stopped at an inn called The Heroes to celebrate their victory at that famous battle. Legend has it that many of those soldiers later settled in the area; it was originally called Waterloo, but to avoid confusion, it changed its name to Waterlooville. That is why we have a fantastic local pub called The Heroes, which stands proudly in Waterlooville. However, I should say that whether it is The Red Lion in Fareham, The Chairmakers in Denmead or our cherished Heroes in Waterlooville, our pubs are struggling under this Government as a result of the national insurance rise and the punitive changes to business rates.

We are working on the regeneration of Waterlooville shopping centre. The town has a proud history, and it is the largest town in the Havant borough council area, but it needs investment. There is a masterplan, and we are pleased to have welcomed new developers recently. On Wellington Way, for example, a company has refurbished the first floor for residential accommodation, and new commercial enterprises are going in on the ground floor. We have seen new companies, such as The Exchange, Babyccinos Play Café, Mini Town, Jolly Jellies and the dance school.

I recently visited the Waterlooville Business Association, which is thriving and working hard to bring a more visible brand to the area. We are urging Lib Dem-controlled Havant borough council to proceed swiftly with adoption of the masterplan. Businesses are waiting for it to be adopted, so that they can have the requisite level of confidence to bring investment to Waterlooville. I am sorry about the Government’s changes, but I will continue to champion the regeneration of Waterlooville shopping centre.

--- Later in debate ---

[James Murray]

I thank the hon. Gentleman for raising the issue of the VOA. Its performance is very important for businesses across the country. I am sure that he will have seen our recent announcement that, this year, we are bringing the VOA into His Majesty’s Revenue and Customs, rather than it being an arm’s length body. Part of that is to save on administration costs—to protect the public finances—but it is also to ensure that we can work with it to improve its service as much as possible, to give the best and quickest possible service to businesses involved. I reassure the hon. Gentleman that VOA performance is very high on our agenda.

Hon. Members raised the impact of RHL relief on pubs, which is understandable, given the particular importance of pubs in all our local communities. Indeed, we had a competition for who has the best pub in their constituency. I will just about resist the temptation to list the pubs in my constituency, as I am here as a Minister rather than with my constituency hat on, but hon. Members should pop into the Duke of Kent if they are ever in Ealing North. To put this in context, the extension of RHL relief for this year under this Government is saving the average pub with a rateable value of £16,800 more than £3,300. That is a real, meaningful difference to pubs across the country. The Government have, of course, frozen the small business multiplier for this year as well. Taken together with small business rates relief, more than 1 million properties have been protected from inflationary increases in their bills this year.

Some hon. Members, including the right hon. Member for Stone, Great Wyrley and Penkridge, have argued that the RHL relief in this year should be higher. However, given the Government’s fiscal inheritance, it was not fiscally sustainable to continue the 75% relief, which cost £2.4 billion a year. Crucially, to repeat remarks I have made several times now, our approach from April 2026 will mean no more use of an indefinite stopgap measure. Our approach will instead offer permanently lower tax rates and the stability that those bring for businesses.

The Budget announcements and the changes I have just described reflect the Government’s first steps to support the high street. We want to go further, and modernise the business rates system. At the autumn Budget last year, the Chancellor therefore announced the publication of a discussion paper that sets out priority areas for reform.

[Suella Braverman]

The Minister says that he cannot afford the £2 billion price tag of maintaining the relief introduced by the last Conservative Government. How, then, is he paying for the £30 billion surrender deal in which this Government are giving up sovereign territory, the Chagos islands, to Mauritius?

[James Murray]

I would challenge the right hon. and learned Lady’s use of language, but that issue is rather outside the scope of a debate on business rates.

As I was saying, we published a discussion paper at the Budget last year, which invited the industry to help us to design a fairer business rates system that supports investment and is fit for the 21st century. Since publishing the paper last autumn, my officials and I have met more than 250 stakeholders across a range of sectors, including RHL and local government, and have received submissions from a range of businesses, including those from the constituencies of hon. Members present today. We are analysing the responses in detail, and the data and views shared by businesses will inform the business rates policy development process. In the summer, we will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at the autumn Budget 2025.

It is worth my briefly drawing hon. Members’ attention to the fact that, beyond the business rates system, the Government are taking other steps to rejuvenate our high streets. We are introducing high street rental auctions to revitalise our high streets and tackle empty properties, which we know can fuel a spiral of decline in town centres. Through the English devolution Bill, the Government will introduce a new community right to buy to help communities to safeguard valued community assets. That will empower local communities to bring assets such as empty shops, pubs and community spaces into community ownership, helping to revitalise our high streets and eliminate vacant properties.

Alongside that, the new £1.5 billion plan for neighbourhoods programme will deliver up to £20 million of funding and support over the next decade to 75 communities across the UK, laying the foundation to kick-start local growth and drive up living standards. As part of the programme, local partnerships will be able to fund interventions focused on revitalising high streets. The Government will announce further plans to support high streets in the small business strategy later this year.

As we have heard, hon. Members are rightly concerned about the high streets in their constituencies. We are all passionate about the places where we live and that we represent, and we want them to thrive. As I have set out, the business rates system that this Government inherited has been failing to give high streets the long-term, certain and stable support they need, instead providing only stopgap help through RHL relief that has kept changing and has been repeatedly extended ahead of an annual cliff edge.

This Government are fixing the foundations of the business rates system, and that starts with permanently rebalancing the burden of RHL properties through introducing permanently lower tax rates from 2026-27.

Economy, Welfare and Public Services

Suella Braverman Excerpts

Monday 22nd July 2024 Commons Chamber

[Suella Braverman (Fareham and Waterlooville) (Con)]

I congratulate the hon. Member for Queen’s Park and Maida Vale (Georgia Gould) on a simply superb speech that follows the best traditions of the House. She has done her constituents proud, and I know that she brings huge expertise and commitment to this House. I wish her all the best.

I put on record my thanks to the good people of Fareham and Waterlooville for sending me back to Parliament. We had a fantastically energetic—let me put it that way—and hard-fought campaign. I am honoured and humbled to have the privilege to speak on their behalf in this Chamber.

One thing struck me in the King’s Speech—not the long list of policies that will no doubt damage our economy, or the vague promises that will not survive contact with reality. For me, the thing that was conspicuous by its absence was the total failure of the Labour Government to deal with child poverty and scrap the two-child benefit cap on welfare. [Interruption.] Yes, hon. Members heard that right. [Interruption.]

[Madam Deputy Speaker (Dame Siobhain McDonagh)]

Order. Could we show respect and listen to the Member’s speech?

[Suella Braverman]

I detect a bit of surprise on the Government Benches. I have risen to speak on scrapping the cap. In the grand tapestry of British politics, where the warp and weft of policy and principle interlace, it is not often that a Conservative MP will find threads of agreement with friends across the aisle, but here we are, discussing a proposal backed by Labour MPs, led by the hon. Member for Liverpool Riverside (Kim Johnson) and backed by the Liberal Democrats, the Scottish National party and many Opposition parties. It is one with which I agree, because it speaks to my profound sense of justice and, dare I say, compassion. I will say why Conservatives can and should back scrapping the cap.

Let us not rewrite history, because there has been a lot of nonsense from Labour Front Benchers about the situation that we inherited in 2010. To put it simply, we inherited no less than an economic catastrophe, and we worked hard to recover from that situation. The deficit stood at 10% in 2010; we got that down to 1.9%. Public sector net borrowing was at 10%; we got that down to 3%. We were in a deep recession, and we now have the fastest growing economy in the G7.

We had to make incredibly difficult decisions back in 2010 to reduce our welfare bill, but it is clear to me that through those welfare reforms, spearheaded by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), we overhauled an overly complex, bureaucratic system, and helped millions of people get back into work. Four million more people are in work now than in 2010. The unemployment rate is down to 4.4%—almost half what it was in 2010. We can make changes to some of the decisions that we made back then.

It is clear to me from my work with vulnerable families in Fareham that the cap is not working. It is pushing more children and families into relative poverty, causing them to use more food banks. There are three good reasons for scrapping the cap.

[Ian Lavery (Blyth and Ashington) (Lab)]

Will the right hon. and learned Lady tell the House who introduced the cap, why, and which way she voted when the measure went through this House?

[Suella Braverman]

I just set out that the parlous economic situation forced us to make impossible choices, but thanks to the improved economics and the improvements brought about by universal credit, I believe that it is time to put child poverty first and scrap the cap. There are three big reasons for Conservatives to support that. First, it is affordable. For about £1.7 billion—0.14% of total Government spending—we could quickly bring around 300,000 children out of poverty. In this improved situation, that is the fair and right thing to do. Secondly, the reason why it was introduced in the first place was to disincentivise poorer families from having more children, but that has not necessarily worked. The number of children born has remained relatively stable. As the Joseph Rowntree Foundation found, heartbreakingly, 43% of children in larger families are in poverty. The children hardest hit are those under four. It predominantly affects younger children, and those in large families. I believe that the cap is aggravating child poverty, and it is time for it to go.

I know that there is the argument, “Don’t have children if you can’t afford them.” To me, that is not compassionate, fair or the right thing to say. As Conservatives, we should be proudly and loudly the party of family. We should encourage families on lower incomes to have more children. For those families on middle and higher incomes, we should change our tax regime so that they are incentivised to have children. We have better parental leave policies, better childcare provision policies and better maternity care. I am a Conservative because I believe in the strength and the sovereignty of the family unit. We should support it, not suppress it. This is not about right or left. This is about right or wrong. Let us come together, in a spirit of compassion and common sense, to scrap the cap and end child poverty for good.

[Madam Deputy Speaker]

I call Sarah Sackman to make her maiden speech.