Business Rates and the Recession

More than 20 years ago, my company moved into its first commercial premises. My shock on receiving my first non-domestic-rates bill stays with me to this day: "You mean I have to pay all that without even having my bins emptied? What am I paying the rates for?" I cried. I imagine that that innate sense of unfairness at the Government's milking of a person's business for cash has been replicated among many business owners throughout the years. On complaining to my local authority, I discovered that it had no hand in setting the rates, which had been set by central Government; the local authority would not have any interest in providing a service, given that the money that it was instructed to collect went straight into Government coffers. I know that some of the money is reallocated back and that local authorities see some of the fruits of their labours, but it seemed wrong to me then that I, the business rate tax payer, was powerless, and that the local authority had no power either. It just played the role of tax collector. There have been a number of attempts to link various payments from businesses to the quality of service that they receive. There are business improvement districts, for example. When businesses are strong participants in a bid, the districts seem to work well, although some have enjoyed mixed success. However, at least businesses get a vote and a say in such a bid. As has been mentioned, we recently debated the Business Rate Supplements Bill. We supported it because we recognised that major infrastructure developments such as Crossrail need businesses to support them financially and that businesses along the route supported Crossrail. Such a big project would not be able to survive without business support. The Liberal Democrats tabled several amendments to the Bill in an attempt to introduce a ballot for all businesses that were to be levied. The measure was supported by the Federation of Small Businesses, the Institute of Directors, the CBI, the Royal Institution of Chartered Surveyors and the British Chambers of Commerce—but not by the Government. We tabled amendments to give businesses a say by means of a project delivery board, through which the expertise of business could be used in the delivery of improvements supposed to be for the benefit of all. Nevertheless, all those amendments were rejected or talked out. Businesses are back more or less where they have always been: paying the piper, but never calling the tune. The Conservative motion proposes that local authorities should have the power to apply local business rate discounts, and there has already been some discussion of that. The proposal goes in the right direction, but it is still only tinkering about on the edges of the problem. We need a proper relationship between the local authority and the businesses operating in its area. Businesses might be more willing to pay business rates if they could see what they were getting for their money and if services could be tailored around them; they might be more willing to pay if they had some say in the matter. However, under this Government—or the Conservatives—the chances of that happening are about as likely as Fred Goodwin's getting a Christmas card from the Prime Minister.