Oral Answers to Questions
Debate between Jake Berry and Philip Hollobone
Jake Berry
I am sure that the left-wing think-tank, the Institute for Public Policy Research, is delighted its figures have been repeated in the Chamber, but they are simply incorrect. They do not include 60% of our national infrastructure spending or the spending on HS2, which I know, as someone who was born and brought up in the north, and who lives and works there, will benefit the north more than any other part of our country.
Mr Philip Hollobone (Kettering) (Con)
Oral Answers to Questions
Debate between Jake Berry and Philip Hollobone
Jake Berry
As a proud Lancastrian, it is not for me, nor is it for Government, to tell Yorkshire what devolution deal it should have. However, I gently point out that in 2015, Barnsley, Doncaster, Rotherham and Sheffield asked for powers from the Government and we gave them to them; they asked for new money from the Government and we gave it to them; and they asked to have an election next May and we gave it to them. When will the people of south Yorkshire learn to take yes for an answer?
Mr Philip Hollobone (Kettering) (Con)
Kettering Borough Council, of which I am a member, provides specialist housing advice to those in financial difficulties to prevent homelessness in the first place. It is working closely with local housing associations to bring forward a record number of new homes for social rent. Is that not exactly the right approach?
Business Rates (Rural Areas)
Debate between Jake Berry and Philip Hollobone(8 years, 7 months ago)
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Jake Berry
I thank my hon. Friend for his contribution; I will come on to the effect of that, but the short answer is yes. Cash machine operators have warned that the attachment of business rates to through-wall ATMs makes them uneconomic, particularly in rural areas where there is low footfall and their use is not as common. They have estimated that 1,000 existing ATMs, let alone ones that we would hope to bring into our communities following a bank closure, are at risk.
An additional danger for our village shop, post office or former bank is that many of the small businesses in the village will do the majority of their transactions in cash. If people’s access to cash is suddenly a car or bus journey away, some of our most vulnerable rural residents, who will not have access to transport, will be forced to leave their village or small town to access cash and, having made the journey, will also do their shopping outside the village. As with festivals and stables, taxation of ATMs is described by the VOA as an area where some inconsistencies exist. Those inconsistencies are leading to the removal of cash machines or large, historical and significant claims for rates. It is currently estimated that 1,000 or so cash machines are at risk of removal due to the charge.
I believe that the charges were brought about by action we took in 2012. Correctly, in an attempt to encourage local authorities to seek business growth in their areas, the Government empowered local authorities to retain 50% of business rates, with the idea that they would go out and find new businesses, in the towns, villages and countryside, and encourage them to open in their areas. Local authorities now collect £26 billion a year in business rates—to put that into context, I should say that it is a bigger money spinner for local authorities than the fuel duty.
As we hoped, we have seen significant behavioural change by both local authorities and the VOA since 2012, but not in the way we hoped. Instead of localism and the encouragement of new businesses, local councils seem to have been inspired to carve out stables in people’s homes for a pet tax, festivals for a party tax and ATMs for a cash tax. I hope that the Government will urgently address such anomalies in their business rate review.
I make a final appeal to the Minister. During that review, can we look at putting a mechanism in place so that, when the VOA changes policy on the collection of business rates, that is announced and we have the opportunity to discuss the impact of that change here in the House? I say that because these unknown changes, which MPs find out about through their postbags, are seriously impacting on and damaging rural businesses. I hope and believe that, as part of our review, we will ensure that that does not continue.
Mr Philip Hollobone (in the Chair)
If the Minister would allow me 30 seconds at the end of the debate to put the motion to the Chamber, that would be appreciated.