Business Rates and the Recession

The Government have not made a precise assessment of that, but the general concern, particularly about cash-flow pressures and sources of credit that will help see companies through this period, has been at the root of the schemes that are now in operation. That was the root of the deal that we did with the European Investment Bank to make sure that we have £350 million for small and medium-sized firms, which has been agreed by UK banks. It is also why we want our banks to lend responsibly again, so that those banks that have taken a good slice of taxpayers' support are required in legally binding agreements to increase the level of lending that they will undertake next year. So Lloyds will increase its lending in the next 12 months by £14 billion over last year's figure, with £11 billion of that to business. RBS will lend an extra £25 billion, £16 billion of that to business. In conclusion, I return to the speech that we heard from the hon. Member for Bromley and Chislehurst and to the motion. The speech was long on criticism, as I have come to expect from him, but it was short on solutions and even shorter on commitments that businesses could take seriously, rely on and expect from the Conservative party. Faced with an unprecedented failure of the global financial system, which is now having severe repercussions on jobs, confidence, credit and demand, there are easy criticisms, but there are only hard decisions that need to be taken. Recognising the problems, as we do, and recognising the pressures that business faces, we have been clear and committed and are acting in every way we can to help them through the period. That is why we have in place targeted support for business, we have deferred the increase in small companies corporation tax, we have carried out almost 36,000 business health checks, we have the lending schemes in place, an extra £100 million has gone into debt advice, and it is the Government's aim and commitment to try and pay invoices, particularly to small firms, within 10 days. On business rates, the Government's package of measures includes, among other things, the commitment to the annual retail prices index cap, the introduction of the small business relief scheme and the regular revaluation every five years. That combination of measures enables the business rate system to raise revenue vital for local services while being certain and fair and, when appropriate, providing reliefs for specific businesses. That is what our amendment to the Opposition motion sets out, and I urge my hon. Friends to support it.