Business Rates and the Recession

What we have said is that we should postpone action so that we maintain the 2005 values until 2010. That would give the businesses a breathing space, and would enable the revaluation to be carried out on a proper basis with consultation, an impact assessment and a quantification of the revenue. That would enable the businesses—which know that there will inevitably have to be some uplift in their rates—to plan properly. The key point is that it was impossible for them to plan properly in this instance, because they were given no notice. In a number of cases, particularly at the smaller end of the scale, the amount demanded in back rates exceeded the annual turnover of the business. In order to pay the rates that will fall due in the coming week, businesses will technically be trading insolvent. Apart from one of the blandest letters that I have ever seen, from the Insolvency Service, the Government have been able to produce no defence. When the hon. Member for Great Grimsby (Mr. Mitchell)—who I am delighted to see is present—initiated a debate in Westminster Hall, the Minister, as ever, put up a stalwart defence of the Government's position, but I felt he was a bit like General Custer at Little Big Horn. The only difference, apart from the fact that General Custer had long flowing locks, was that the Minister was at least able to walk away at the end of the day. The fact is, however, that he was surrounded, and there was no one to support him because the case was unanswerable. When I was a barrister, I occasionally had to tell clients that they did not have a case. The Government are in exactly the same position. Their case is roughly the same as that of a defendant when his fingerprints have been identified, there is a DNA sample, he has signed a confession, and the Archbishop of Canterbury was an eye-witness. They have been caught bang to rights, and the sooner they accept that and move in the direction that has been suggested by my hon. Friend the Member for Cities of London and Westminster (Mr. Field), the better. Otherwise, the ports sector in this country is at real risk of being dealt long-term damage.