Business Rates High Street Retailers 2024-12-03
2024-12-03
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The question arises from the need to support high street retail businesses facing financial challenges.
What steps she is taking to introduce permanent reductions to business rates for high street retailers. The Non-Domestic Rating (Multipliers and Private Schools) Bill will deliver these changes in April 2026, but what measures are being taken now?
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for high street retail, hospitality and leisure properties from 2026-27. This tax cut must be sustainably funded, so we intend to introduce a higher rate on the most valuable properties—those with a rateable value of £500,000 or above—from 2026-27.
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Q2
Direct Answer
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Context
The question stems from the concern about high street businesses being displaced by online retailers due to unfair tax burdens.
High streets in my Pendle and Clitheroe constituency were hollowed out under the last Conservative Government, with many shops left empty. Small, independent businesses are the backbone of our local economy, employing local people, keeping our towns vibrant and giving them their character and charm. Can the Minister assure me that multinational giants will pay their fair share under Labour, levelling the playing field and enabling our high streets to thrive?
My hon. Friend is absolutely right about the importance of small, independent businesses in his constituency, and I am sure his sentiment is shared by Members across the House. Through our reforms, we are setting out to make sure that those properties with a rateable value of £500,000 or more pay so we can have a permanent tax cut for high street business.
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Q3
Partial Answer
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Context
The question addresses the financial challenges faced by local independent businesses due to business rates.
Ahead of Small Business Saturday, I congratulate St Martha Greek taverna in Nantwich on being the first winner of my Crewe and Nantwich small business of the month competition. Small businesses on our high streets, such as St Martha, regularly highlight business rates as a significant challenge, so what steps is the Minister taking to ensure that they can continue to thrive?
May I extend my congratulations to St Martha Greek taverna in Nantwich? Given the time, I am feeling a bit hungry now that we are talking about food. I reassure my hon. Friend that our plans to reform the business rates system would see a permanent tax cut for retail, hospitality and leisure businesses.
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Assessment & feedback
The answer did not provide specific details on St Martha's rateable value or eligibility for support.
Response accuracy
Q4
Direct Answer
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Context
The question is prompted by the lack of physical banking facilities in certain communities.
Many people in my community rely on in-person banking and access to cash. I was pleased to recently open the banking hub in Ossett town centre. Ossett was previously one of the 55 bankless towns in the UK. How are the Government looking to further support those who rely on those services, particularly in towns and rural villages?
My hon. Friend is right to highlight the importance to communities of having access to cash and banking services, which is why we have committed to rolling out more banking hubs across the country—100 by the end of this year and a total of 350 through our commitment.
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Q5
Partial Answer
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Context
The question addresses the financial burden placed on small businesses due to increased taxes and business rates.
The heavy burden of business rates and the national insurance contributions that the Government are going to impose on small businesses is taxing businesses to death. Does the Minister recognise that in doing so, he is going to cause unemployment, higher inflation and lower growth, and that we are heading for higher taxes in future because of the downward economic spiral?
As the right hon. Gentleman will see in the National Insurance Contributions (Secondary Class 1 Contributions) Bill that we will be debating this afternoon, we have doubled the employment allowance to help small businesses to employ up to four people earning the national living wage without paying a penny in national insurance.
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Assessment & feedback
The answer did not address the negative impacts on employment and local economies.
Response accuracy
Q6
Partial Answer
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Context
The question is prompted by the financial strain on high street businesses due to increased taxes.
Businesses like Mr Miles in Taunton High Street are being hit hard by the changes in taxes for hospitality businesses, including the increase in the wage bill and national insurance contributions, and the massive increase in business rates. That business is now considering reducing its opening hours, which would make our high street less vibrant than it should be. One challenge is the £50,000 rateable value limit for the discount, as many high street premises have a rateable value of more than £50,000. Will the Chancellor consider reviewing the limit placed on the business rates discount for small businesses?
As the hon. Gentleman will know, we set out our plans for reforming business rates to ensure that retail, hospitality and leisure properties on the high street with rateable values below £500,000 will benefit from a permanent tax cut from this Government.
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Assessment & feedback
The answer did not address reviewing the current discount limit of £50,000.
Response accuracy