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Business Rates Reduction Services

26 May 2021

Lead MP

Kevin Hollinrake
Thirsk and Malton
Con

Responding Minister

Jesse Norman

Tags

EconomyTaxationBusiness & Trade
Word Count: 9005
Other Contributors: 4

At a Glance

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

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:

Lead Contributor

Thirsk and Malton
Opened the debate
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.

Government Response

Jesse Norman
Government Response
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.
Assessment & feedback
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.