Questions & Answers
Q1
Partial Answer
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Context
Business owners in Chipping Sodbury have complained that the business rates system is unfair as it is based on turnover, not profit. The Exchequer Secretary previously promised to consider these points ahead of future Budgets.
When I met Chipping Sodbury chamber of commerce recently, business owners told me that the business rates system is broken and unfair, in part because it is based on turnover, not profit. Does he now accept that the business rates system is broken, and that rather than being reformed it should be abolished and replaced with a fairer system?
We have a tax on profits in the UK, which is corporation tax. In our corporate tax road map, we have committed to keeping that stable in this Parliament, rather than having it jump around as it did in the last one. I do not think it would be right to change business rates from being set according to property rents.
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Assessment & feedback
The issue of abolishing and replacing the business rates system was not addressed, only the stability of corporation tax and current setting method for business rates were discussed.
Response accuracy
Q2
Partial Answer
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Context
Coastal towns like Poole rely heavily on small businesses which contribute to the local economy and character. Recent polls show public support for higher levies on big tech companies.
Could this be a way to raise revenue to cut business rates and support bricks-and-mortar shops that give life to our high streets?
The Chancellor announced the great British summer savings scheme which will run until 1 September. On online giants dodging VAT, we are looking at further ways to raise more revenue by going after those companies. In the last Budget, multipliers in the business rates system were changed so that small high street businesses would pay a lower tax rate than large properties.
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Assessment & feedback
The specific proposal on levies on big tech was not directly addressed; instead, alternative measures to support small businesses and raise revenue were mentioned.
Response accuracy
Q3
Partial Answer
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Context
A newly elected Member of Parliament pledged to cut business rates for certain venues by 20% if they became Prime Minister. The question challenges the Treasury on preparing models or plans to deliver on this promise.
Given that the hon. Member is facing near certainty of becoming Prime Minister, has the Treasury started modelling numbers to cut business rates for pubs, clubs and music venues by 20%, and if not, when will work begin?
We have already taken action by cutting business rates for pubs, bars and live music venues by 15%, showing support for those hospitality venues.
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Assessment & feedback
The question asked about modelling a 20% cut but the answer only confirmed a previous 15% reduction without addressing plans or models for further cuts.
Response accuracy
Q4
Direct Answer
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Context
The business rates system is criticized for being based on turnover, not profit, which disproportionately affects small businesses.
What steps are being taken to reform the business rates system?
We have started working on reforming the business rates system, including permanently lowering multipliers for high street businesses. We will also consult on collecting more VAT from online sellers to improve the business rates system.
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Assessment & feedback
Response accuracy