Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

The rating system is what it is; it reflects the rental value of properties. I readily acknowledge that in an economy that is changing shape rapidly, where the digital economy plays a much larger role and where some of the biggest businesses are not based on bricks and mortar, there are some very significant challenges for us, which we need to look at. In the short and medium term, business rates play a vital role in providing revenue to the Exchequer—and from 2020, of course, they will be used wholly to support local authorities.

[Rachael Maskell (York Central) (Lab/Co-op)]

16. In York, many businesses are paying inflated rents from overseas and local landlords, pushing up the rateable value, so business rates are sky high. The revaluation has caused some businesses a 600% increase, which is detrimental to the local economy and the high street. Will the Treasury work with the Department for Communities and Local Government to carry out an urgent review on the whole business rate system, because the model is broken?

[Mr Hammond]

I will say something more about the medium and longer-term challenges to business rates when I deliver my Budget next week. The hon. Lady would not want to alarm anybody in her constituency and she will know that nobody will see their rates bill go up by 600%.

[Rachael Maskell]

They have.

[Mr Hammond]

Nobody will see their rates bill go up by 600%, and the damping mechanisms make that clear. Of course rateable values may go up by very significant amounts. I shall have more to say about this next week.