Business Rates and the Recession

Well, that is another argument from the Opposition for a fiscal stimulus. It also overlooks the fact that we have put in place the VAT cut, and the Office for National Statistics suggests that 70 per cent. of the cut has been passed through into prices. Other independent commentators have said that it is the equivalent of a 1 per cent. interest cut. The hon. Gentleman also overlooks the fact that in the pre-Budget report the Chancellor said that he would not proceed with the increase in the small companies rate that was scheduled.