Business Rates and the Recession

I can understand the reaction of business people in Bassetlaw. If what my hon. Friend says about his council's use of the money is correct, that places it out of step with the mainstream of councils that receive LAGBI money. Most councils see the reason for the money and understand its value, and they have been able to use it to support local jobs and businesses, particularly during this difficult time when the economy is on a downturn and businesses are under new pressure. We are conscious of the pressures on business at present, and of the pressures that business rates can produce, but I remind the House that rating systems of one type or another have been in place in this country for more than 400 years. The present system is central to providing the revenues that support those local government services—such as education, housing, waste, social services and planning—that benefit us all. This year, business rates should raise around £20 billion—all of which, I point out to the hon. Member for Wealden (Mr. Hendry), is redistributed back to local authorities, rather than going into central coffers or the tax pool.