Business Rates Relief: High-street Businesses

Jess Brown-Fuller Excerpts

Wednesday 4th June 2025 Westminster Hall

[James Wild (North West Norfolk) (Con)]

I thank my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson) for securing this important debate. I would thank Members from across the House for their contributions, but one main party has failed to show up—apart from the Minister and his Parliamentary Private Secretary, of course.

High street businesses are not just shops, restaurants, pubs, banks and other firms; they represent jobs and investment, but above all they represent identity and a sense of place. Business rates have long been a source of concern for retail firms. That is inherent in their nature as a fixed cost that does not flex to profitability, business cycles or sales.

My hon. Friend the Member for South West Hertfordshire (Mr Mohindra) spoke of his direct experience as a retailer. There is a case for reform but, as with everything—particularly with this topic—the devil is in the detail. The action that the Government have chosen to take means that shops and others will pay higher bills this year. That comes with consequences, and hon. Members have set out what has happened in their constituencies.

When we were in government, we understood the value of our high streets. That is why we doubled the small business rates relief to £15,000 and almost trebled higher-rate relief to £51,000. That took a third of properties out of business rates completely. We also provided long- term support through things such as the towns fund and the long-term plan for towns, which King’s Lynn in my constituency is benefiting from; it is making a difference.

Of course, in 2021 retail relief was set at 100% to reflect the realities and extraordinary pressures of the covid restrictions. In 2022, retail, hospitality and leisure properties were eligible for a 50% discount, and that was increased in 2023 to 75%—a tax cut worth £2.4 billion, which was then extended to 2024. As my right hon. Friend the Member for Stone, Great Wyrley and Penkridge rightly said, that was to help the retail, hospitality and leisure sectors adjust and continue to recover.

That approach is a far cry from the 40% discount that the Government are offering now, almost doubling bills. The Exchequer Secretary was talked up by my right hon. Friend, and if he has his backing he is sure to go far. He is a consistent man, so he will likely claim that there are no plans to extend the 75% relief. However, if people look at our track record, they will see that we consistently provided relief and backed our high streets, and we would have continued to do so—I and my hon. Friends would have made sure of that.

The Government’s decision to cut relief from 75% to 40% will leave many high street businesses facing increased costs. Some 250,000 businesses will be worse off, to the tune of £925 million. According to the British Independent Retailers Association, a shop with a rateable value of £60,000 will pay nearly £20,000 this year, up from only £8,000 in 2024. The average pub will have to pay £5,500 more annually. As we have heard, pubs are at the heart of our communities. Kate Nicholls, the chief executive of UKHospitality, has said that when Wales reduced relief to 40%, closures in Wales were a third higher than they were in England.

Any Member who talks to businesses every week, as I do, will know how difficult things are out there due to the choice that this Government have made to increase costs for our high streets. Under the Government’s plans, from next year there will be higher business rates for properties over £500,000. That will not only hit online retailers. The British Retail Consortium has expressed concerns that it will hit 4,000 larger stores in England, many of which are the anchor stores on high streets that help to drive footfall and support nearby businesses—more unintended consequences from this Government.

As we have heard, high streets and local businesses are indispensable to our economy. Retail alone comprises 5% of GDP, providing 3 million jobs directly and 2.7 million more in the supply chain. Hospitality is the third largest employer in the UK, with 3.5 million people working in the sector, and it contributes £93 billion annually to the economy. Beyond their economic value, high street businesses form the heart of local communities, providing accessible services and so much more.

[Jess Brown-Fuller (Chichester) (LD)]

I am sure that the hon. Gentleman will join me in congratulating Robin’s Nest coffee shop in my constituency, which has just celebrated its first birthday. In the year that the shop has been open, its owners have seen their business rates double, and they have written to me to say that they might not make it to their second birthday. Does he agree that business rate reform cannot come soon enough and that it would be a crying shame to lose such high street businesses?

[James Wild]

Absolutely. That is the sort of risk taking and job creation that we want to see across all our constituencies around the country, and it is that opportunity that the Government are crushing through their decisions.

The hon. Lady’s example illustrates that the impact of these changes is already being felt, but we have been warned that worse is to come. The British Property Federation has found that business rates changes could cause a £2.3 billion hit to the economy, jeopardising 20,000 jobs. When businesses face higher costs, the alternatives open to them are higher prices, job losses or closures—boarded-up shops become inevitable—and young people and, in particular, part-time workers lose out on opportunities as a result.

The Local Government Association has also raised concerns about the financial impact that these reforms could have on local councils. It has urged the Government to introduce a transitional mechanism to ensure that local council services are not put at risk. I would be grateful if the Minister could respond directly to the LGA’s concerns.

Sadly, these are not stand-alone reforms; they come on top of the £25 billion jobs tax; the Employment Rights Bill, which will add £5 billion a year to costs; and the family farm tax and business tax. As if it were playing a game of Buckaroo!, Labour is loading cost after cost on to businesses and there will be a reaction. Half the major retailers surveyed by the British Retail Consortium said that the Employment Rights Bill will lead to job cuts. How does the Minister expect companies to absorb these much higher costs on top of business rates and higher national insurance?

Last month, the shadow Chancellor, my right hon. Friend the Member for Central Devon (Sir Mel Stride), visited Beales, which was holding a “Rachel Reeves closing down sale” as it wound down its business after more than 140 years. That is just one of 200,000 businesses that have closed under this Government.

The future of our high streets should be a priority for any Government. Policies should be designed to help them to thrive, rather than burdening entrepreneurs and job creators. Extraordinarily, the Prime Minister said earlier this week:

“I don’t think you can tax your way to growth.”

Yet that is precisely what the Government have done with the £25 billion jobs tax. They are choking growth, costing jobs and hitting businesses that our communities rely on.

Before the election, the Labour party promised that it would scrap business rates completely. In power, it simply ditched that pledge—another broken promise. It is little wonder the British Independent Retailers Association said:

“For all the government’s rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite.”

It is time for the Government to start listening to businesses and change course.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Jess Brown-Fuller Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[Jess Brown-Fuller (Chichester) (LD)]

The hon. Member mentions small businesses. Local hairdressers in my constituency have been in touch with me to say that given the difficult economic picture, these NICs rises will mean that they cannot take on apprentices this year. Does he agree that this NICs rise is a tax not just on business, but on education?

[Gareth Davies]

Absolutely. To be fair, I do not think the profound impact of this tax is appreciated by Labour Front Benchers. The hon. Lady has pointed out yet another area in which it will have an impact—tax on education. I could talk about the impact on universities as well.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Jess Brown-Fuller Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Jess Brown-Fuller (Chichester) (LD)]

Thank you, Madam Deputy Speaker, for the opportunity to share the concerns that my constituents and businesses in Chichester have raised with me since the announcement in the Chancellor’s Budget that employer’s national insurance contributions would be increased.

First, I would like to acknowledge the Labour Government’s inheritance from the previous Government, and recognise that tough decisions need to be made to rebuild public services, especially our health service. The Liberal Democrats welcome the proposed increase to employment allowance, but the blanket increase in the rate of secondary class 1 contributions across all sectors is going to make things harder for GPs, social care providers, charities and local authorities in my constituency and across the country. Those sectors have had a tough time for years, struggling with rising energy costs and higher interest rates, with thousands of care providers on the brink of bankruptcy, NHS dentists already delivering some NHS treatments at a financial loss, and charities already grappling with underfunded public sector contracts.

West Meads GP surgery is one of the smaller practices in Bersted in my constituency. It is looking at increased costs of at least £25,000, which will mean a reduction in staffing hours. The GP who wrote to me said:

“This is a first and will certainly impact on patient care if not addressed.”

The same can be said for Witterings Medical Centre, another practice that is already operating under extraordinary demand. The added costs will exacerbate strain in the system, because overstretched and under-resourced GPs will lead to an increase in hospital admissions, overwhelming NHS capacity at a time when it already cannot cope. The Government’s treatment of GPs as private entities excludes them from the employment allowance support, and if we do not fix the front and the back door of our national health service, the middle—our secondary care, our hospitals—will continue to bear the burden.

St Wilfrid’s hospice echoes these challenges, citing the inequity in exemptions being granted to NHS services, but not to charities providing similar health-related services. The hospice predicts a bill increase of £175,000. That would pay for four nurses, who could be out in the community providing care for the most vulnerable. The predicted national impact of this rise on the charitable sector is £1.4 billion. While I am on the topic of charities, I would like briefly to mention Stonepillow, a charity that supports individuals experiencing homelessness and with compound needs. It has seen a doubling of demand since 2018—it serves 1,000 clients annually—and it reports needing to find an additional £150,000 every year to continue offering its service.

The Secretary of State for Health and Social Care talked of moving the health model in this country from treatment to prevention and from hospital to community, but the increase in NICs directly undermines the ability to do that, if GPs have to reduce their services, if more dentists move further away from NHS contracts, if social care staff lose their jobs when their small and medium-sized care providers go bankrupt, and if community pharmacies, a key pillar in the NHS ecosystem, face spiralling debt and struggle to keep pace with operating costs.

In the interests of constructive opposition, I am not minded to bring problems without solutions. The Chancellor could have chosen to raise the money needed through the much fairer tax changes laid out in the Liberal Democrat manifesto during the general election, such as the reversal of the Conservative tax cuts for the big banks, doubling the rate of gaming duty paid by online gambling services or a fairer reform of capital gains tax. If I had more than 10 seconds left, I would give many other reasons why I am unfortunately unable to support this Bill on Second Reading.

Oral Answers to Questions

Jess Brown-Fuller Excerpts

Tuesday 29th October 2024 Commons Chamber

[Rachel Reeves]

As the hon. Lady knows, because of our commitment to the triple lock, the basic state pension and the new state pension will continue to rise. This winter, the new state pension is worth £900 more than it was a year ago, and it is likely to rise by a further £450 next April. Indeed, during the course of this Parliament, because of the triple lock, the new state pension is likely to be worth £1,700 more—much more than the value of the winter fuel payment.

[Jess Brown-Fuller (Chichester) (LD)]

I am sure that the Treasury was pleased to receive £1.5 billion in a windfall tax from Octopus Energy. Would the Chancellor consider using that money to reinstate the winter fuel allowance for one year until the Treasury has had the opportunity to find a better system of means-testing, so that my vulnerable residents and pensioners in Chichester are not falling off a cliff edge this winter?

[Rachel Reeves]

I can understand the hon. Member’s concern, but of course, that £1.5 billion was already baked into the forecast—it is not new money to spend on initiatives. As she knows, we inherited a £22 billion black hole in the public finances; we will set out the detail of that at the Budget tomorrow, but because of that, we have had to make very difficult choices. Even in those difficult circumstances, though, we have protected the winter fuel payment for the most vulnerable pensioners who are on pension credit. We have also boosted the uptake of pension credit, so that people get the support they are entitled to.

VAT: Independent Schools

Jess Brown-Fuller Excerpts

Tuesday 8th October 2024 Commons Chamber

[Munira Wilson]

Thank you, Mr Speaker. As we have a Treasury Minister rather than an Education Minister opening the debate for the Government, I say gently that he should look at what the Liberal Democrats proposed on reforming capital gains tax as a way to fund some of the important investment that we need in education, rather than looking at taxing parents’ choices to invest in their children’s education.

The Government’s policy would undermine two important principles. First, education should simply not be taxed. As we have heard, all education provided by an eligible body, including university education, music lessons, and tutoring are exempt from VAT, and VAT should not be imposed on any of those things because education is fundamentally a public good. Secondly, parents have the right to choose what education setting is best for their child. As Liberals we have always championed choice, and believe that nothing should get in the way of those important choices. Of course we want to get to a point where every parent can choose a local state school that meets their child’s needs and gives them the best possible start in life, and opportunities to flourish. But let us be honest with ourselves: that is not the reality facing many parents today, especially when their children have special educational needs.

Liberal Democrats have many times raised the crisis in SEND provision. Conservative cuts to school and council budgets mean that many parents and carers simply cannot get their children the support they deserve. The Minister talked a moment ago about sorting out state-school SEND provision, so that no parent with a child with SEND would need to send their child to a private school, but does he recognise that in order to sort out and fix our broken SEND system we will need not millions but billions of pounds? I am not entirely sure that the Chancellor will be giving that kind of money to the Department for Education.

[Jess Brown-Fuller (Chichester) (LD)]

In my constituency there are three independent schools, one of which is a choir school. In one of those independent schools there are 29 children with diagnosed SEND, and only one with an EHCP with that as the named school. Does my hon. Friend agree that given the crisis in attaining EHCPs, especially in West Sussex county council, which is ranked fifth worst in the country and where only 3.6% of EHCPs are given within the statutory framework of 20 weeks, there needs to be more support in dealing with the deluge that this policy will cause county councils—

[Mr Speaker]

Order. May I suggest that interventions are meant to be short and not a speech, especially if you are on the list? People are going to go down to a six-minute time limit shortly. Please, think of others.

Winter Fuel Payment

Jess Brown-Fuller Excerpts

Tuesday 10th September 2024 Commons Chamber

[Jess Brown-Fuller (Chichester) (LD)]

Since the announcement of the Government’s plans, I and colleagues across this House have been inundated with heartfelt stories of elderly people across the country who will be unfairly harmed by the removal of the winter fuel allowance. It is concerning that the impact was not properly assessed before the Government took this step.

In Chichester, we have 24,000 pensioners who are not receiving pension credits, many of whom sit just above the threshold—constituents such as Sherry, who is 80 and registered disabled. She has to maintain an even living temperature to deal with conditions while living in a 100-year-old cottage with poor insulation. Roy and his wife are in their late 80s and have burned through their meagre savings covering their rising energy bills during this cost of living crisis. Vicky writes to me about having to choose between eating and heating in the current winter months because she will not be able to afford to do both.

Our elderly, who have worked hard throughout their lives, are now being abandoned by a Government that should be supporting them when they need help the most. The Liberal Democrats understand the disastrous state our public finances have been left in, due to the fiscal mismanagement of the previous Conservative Government, and we recognise that tough decisions need to be made. However, those decisions should not be made at the expense of our elderly.

The burden of this Conservative fiscal chaos needs to be spread to those with the broadest shoulders, rather than punishing those who have already been hit hardest by it. Cutting the winter fuel allowance in the midst of a cost of living crisis will leave thousands of elderly individuals across Chichester and millions across the UK without the financial support they need to stay warm and healthy this winter. With the price cap due to rise in October, it could be argued that the winter fuel allowance is needed this winter more than ever.

Budget Responsibility Bill

Jess Brown-Fuller Excerpts

2nd reading
Tuesday 30th July 2024 Commons Chamber

[Jess Brown-Fuller (Chichester) (LD)]

Thank you, Madam Deputy Speaker. It is wonderful to see you take your place in the Chair.

It is a pleasure to follow the hon. Member for Southend West and Leigh (David Burton-Sampson), who spoke passionately about his constituency and about embracing all that we have in common rather than that which divides us. It was interesting to hear that he lives in the seventh sunniest place. I look forward to coming back to that point later in my speech.

It is an honour to address the Chamber as the newly elected Member of Parliament for the beautiful Chichester constituency. The constituency underwent some boundary changes for this general election, so I would like to start by thanking the two predecessors who represented the residents I now serve.

Gillian Keegan was the MP for Chichester from 2017, and was the first female MP to represent the constituency. She served as Secretary of State for Education and proudly championed apprenticeships, and the opportunity that her own apprenticeship afforded her, after growing up in Knowsley in Liverpool and leaving school at 16. She was well liked by the Conservative party and across the House, and, although our politics are different, I wish her well in her future endeavours.

I also wish to pay tribute to Nick Gibb, the Member for Bognor Regis and Littlehampton from 1997. Both Bersted and Pagham residents mentioned to me on the doorstep during the last few months that he was a popular MP who had served his constituents well, which no doubt added to their frustration when they realised that they were moving to be part of the Chichester constituency, when their hearts belonged with Bognor Regis. I would like to take this opportunity to reassure those residents that my love for the area in which I have grown up knows no bounds. I say to residents from Bersted to Bosham, Selsey to Southbourne, Westbourne to the Witterings, Fishbourne to Funtington, and all the other areas that did not fit within my poor attempt at alliteration: I will champion you all.

Madam Deputy Speaker, today is the final day in the Chamber before recess. I have no doubt that MPs will be rushing back to their constituencies to spend every possible moment there, but if they do manage to steal away for a long weekend, then I relish the opportunity to be a tour guide for a brief moment and tell them why a weekend in Chichester is a weekend well spent. Although my hon. Friend the Member for Eastbourne (Josh Babarinde) has already laid claim to the glory of representing the sunniest town in the UK, Chichester boasts the high accolade of being the sunniest city, with just under 2,000 hours of sunshine per year—and that is not the only way in which this glorious city punches above its weight.

Hon. Members will not be short of things to do, with beautiful coastline, sailing opportunities at Bosham, Dell Quay, Itchenor and Birdham and the sandy beach of West Wittering, as well as a plethora of cultural offerings, from the internationally renowned Chichester Festival theatre to the Pallant House and Oxmarket galleries, the Novium museum and Fishbourne Roman palace, and even a spot of racing—both cars and horses—at the Goodwood racecourse. They could easily spend an afternoon soaking up the history of the city surrounded by Roman walls, immersed in nature at Pagham harbour or Medmerry reserve, or following the River Lavant, a precious chalk stream.

I would not be forgiven, especially by the head of department, if I did not mention the excellent University of Chichester, where I had the pleasure of obtaining my degree. We are also the birthplace of notable figures such as the astronaut Tim Peake and the singer-songwriter Tom Odell, and we are home to Kate Winslet and authors Greg and Kate Mosse.

You can understand, Madam Deputy Speaker, why my very special constituency is a desirable location for those looking to relocate. It is an area with so much to offer. However, with the majority of the district sitting within the South Downs national park, 100% of the housing allocation is built on only 20% of the land, with a lack of infrastructure surrounding those developments and residents reporting a real struggle to get a doctor’s appointment, sign up with an NHS dentist, find school places that can meet their children’s needs or simply travel from A to B through the traffic on the A27.

As we are a low-lying coastal plain, many communities are also subjected to relentless flooding following developments on floodplains and a lack of maintenance on the rife. I am sure that those in the Chamber will appreciate how important water quality is to many industries, including tourism, fishing, water sports and sailing. It therefore pains me to say that some of the most active storm overflows are in my constituency and that Chichester harbour, which is a site of special scientific interest, has been downgraded to an unfavourable declining condition.

The River Lavant has warning signs along its bed, encouraging residents to wash their hands if they come into contact with the water, and those who enjoy cold water swimming in our water are weighing up its health benefits against how regularly they become ill from doing so. Trust in our water companies and the regulator is at an all-time low. The Liberal Democrats have called for measures to address an issue that is a blight on constituencies such as mine.

The average house price in Chichester is an eye-watering £455,000, and residents regularly express dismay at their increasing rents and mortgages after the disastrous mini-Budget. They are trying to make progress in their lives, but are being pulled back under the immense strain of increasing cost pressures. I welcome the Budget Responsibility Bill, which commits to responsible economic governance to go towards ensuring that what we saw in the last Parliament never happens again.

Finally, I pay tribute to those who supported me to be here, standing in this Chamber addressing my colleagues. I thank my wonderful husband Dean, my son Oliver and my daughter Bethany for their understanding and support, which has spanned far longer than this campaign. They are my inspiration, and I am fighting for their future as well as that of every child in this country. I also thank my mum, who joins us in the Gallery—I am not going to look at her; I have just realised I cannot. She had been so looking forward to retiring in May this year, only to be thrust days later into a general election campaign, knocking on doors with me, delivering leaflets and being my childcare. She was fully behind me in trying to achieve the unachievable, because Chichester had had a Conservative MP since 1868, except for a brief spell in 1923 when it flirted with Liberalism for just 12 months.

On 4 July, residents went to the polling stations and voted for change, whether they were traditional Conservative voters or Labour and Green voters lending me their support. We made political history that night. I recognise the weight of responsibility on my shoulders to do every single one of those people proud and to represent the area in which I had the pleasure of growing up. It is a privilege and an honour. I will fight for my special patch of our great country every day.

[Madam Deputy Speaker (Ms Ghani)]

I call Andrew Pakes to make his maiden speech.