Commons Sense

House of Commons · Westminster Hall

Business Rates Reduction Services

26 May 2021 · 4 other contributors · 9,005 words

Opened by Kevin Hollinrake Con Thirsk and Malton

Responding minister: Jesse Norman

Business ComplianceBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Kevin Hollinrake raised concerns about business rates reduction services in Westminster Hall. A government minister responded.

Key points

  • MP expresses concern over RVA Surveyors preying on small businesses through unfair contracts.
  • MP cites example of constituent paying 18,000 over 12 years with no real service received.
  • MP asks Government to investigate RVA Surveyors for fraud and scams and to extend consumer protection laws to microbusinesses.

Key requests to Government

The MP asks for the Insolvency Service to investigate RVA Surveyors for fraud and scams, and he suggests extending consumer protection laws to cover microbusinesses or reforming business rates altogether. He also proposed increasing VAT as an alternative to business rates, which would level the playing field between online businesses and high street ones.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Kevin Hollinrake Con Thirsk and Malton

The MP is concerned about the activities of RVA Surveyors, a company that preys on small businesses by offering them unfair contracts that divert government support meant for those businesses into the company's bank account. He cited an example where one of his constituents signed a 12-year contract and paid £18,000 over the term without receiving any real service in return. The MP also mentioned other dubious tactics used by RVA, such as forging signatures and using harassment to enforce contracts.

Other contributors (4)
  • James Murray Lab Co-op Ealing North

    Mr James Murray criticised predatory business rate relief services, highlighting their unethical practices of preying on vulnerable small and medium-sized businesses. He noted that some providers lure businesses into multi-year contracts with high commission fees for benefits they are entitled to automatically through government schemes. Murray called for the regulation of these services and requested a comprehensive review of the business rates system.

  • Jim Shannon DUP Strangford

    Paid tribute to Brian Little and emphasised the need for a UK-wide approach to business rates relief. Mentioned that online sales now account for 33% of retail sales, compared with 20% a year ago. Advocated for licensing business rate companies to prevent scams and predatory payment tactics.

  • Peter Grant SNP Gordon

    Expressed concern about dishonest business practices, suggesting the need for criminal sanctions and broader consumer protection legislation to cover small businesses.

  • Stella Creasy Lab Co-op Walthamstow

    Ms Creasy highlighted the issue of companies like RVA exploiting small businesses by offering assistance with business rate relief but charging for services that should be automatic. She cited an example where her constituent was involved in a seven-year contract dispute, leading to years of legal battles and distress. Inquired about the necessity for Government to proactively inform businesses of their eligibility for rates relief, suggesting local authorities include information in bills indicating that most small businesses are entitled to rate relief.

Government Response

Jesse Norman

I thank my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) for having secured this important debate on a matter of considerable public interest, particularly in his constituency. I express sadness that business rates are overshadowed by other political issues. The Government cannot comment on specific cases involving predatory practices due to their connection to the tax system. The business rates system is relatively straightforward with companies and individuals liable based on property rateable value and multipliers, offset by reliefs. There are resources available for businesses unsure about their rateable values or those unhappy with them to check, challenge and appeal. Most relief applications are automatic or require minimal information from the ratepayer, such as transitional relief and small business rate relief. The Government provided £16 billion in relief to retail, hospitality, and leisure sectors due to covid-19, applied automatically to rates bills. Predatory practices by some companies have caused distress but protections exist within the system, including the Business Protection from Misleading Marketing Regulations 2008 and the Misrepresentation Act 1967. Small businesses can seek help through legal channels or the Insolvency Service if they believe there has been illegal activity. Microbusinesses share characteristics with consumers and may be worthy of protections in their own right due to predatory practices by a small number of companies. The Department for Business, Energy and Industrial Strategy needs to revisit this area to assess further protections that can be provided.

Get updates like this by email
▸ Assessment & feedback
Summary accuracy