Oral Answers to Questions

Hilary Benn Excerpts

Monday 25th November 2013 Commons Chamber

[Mr Pickles]

Having reduced my own Department’s spending by 60%, I regard 50% as a good start. The advantage of that is seen not just in the settlement but in the good running of the authority, so I commend my hon. Friend’s authority for its magnificent work.

[Hilary Benn (Leeds Central) (Lab)]

The Secretary of State has rightly talked about the importance of local authorities keeping down council tax in these tough times for many people—although he has imposed an increase on those on the very lowest incomes—but when it comes to business rates, which he set, he pursues a completely different policy. In the past two years, he has been quite happy to see struggling businesses hit by increases in business rates of 5.6% and 2.7%. What does the Minister say to owners of small businesses who feel that that is both damaging and unfair?

[The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)]

The right hon. Gentleman’s question gives me a chance once again to re-establish the fact that the Government have made no real-terms increase in business rates; there has only been an inflationary change. Moreover, we have helped small businesses by trebling the small business rate relief from £300 million to £900 million a year.

[Hilary Benn]

That answer will not reassure the owners of small businesses. The Minister talks casually about an increase in line with inflation, but the takings of many of those businesses have not gone up in line with inflation because of the state of the economy. They will also not be reassured because, as things stand, next April will see a further rise of 3.2%. Since he has not been able to tell the House what further help he will give to small businesses, is it not time that the Government looked at our plan, which is a commitment to cut and then freeze business rates over a two-year period? That could help 1.5 million small businesses, which is many more than he is helping at the moment, and save them an average of £450.

[Brandon Lewis]

I appreciate the fact that the Opposition are talking about business rates, but they have not mentioned that they plan to put up corporation tax, which this Government have reduced to its lowest level to make us more competitive than at any time under Labour. The right hon. Gentleman also still misses the point. Small businesses benefit from small business rate relief, which we trebled from £300 million under Labour to £900 million. Furthermore, a third of a million businesses do not pay business rates under this Government and have not seen the increase that he outlined.