Business Rates and the Recession

I have a quick and simple message for those on the Government Front Bench. I want to concentrate on the plight of small business and to make the point that it is in serious trouble, much of which is due to this Government. The Government are doing lots of things not very successfully because they did not take into account the fact that they had to administer and manage their projects. Also, I want to say that they could have seen rates as a real way of putting capital into local business, but they failed to understand that. The difference is that loans must be paid out, but rates, if the Government wish to offer relief, do not have to be taken. That was the major point that I wanted to make. There are a number of Government schemes—I have all the figures here—but they are not working. It is very simple. Business rates in the UK are three times higher than those in any other European country and higher than those in the USA—what a millstone to put around the necks of our businesses. The Government could have helped by ensuring that there was real relief for small business, but that has not happened. My hon. Friend the Member for Mid-Worcestershire (Peter Luff) has proposed an action that I hope the Government will take up, but we have not yet heard that that will happen. Perhaps we will tonight. Finally, the Government have decided that they will go ahead with a 5 per cent. increase in business rates. At this time, that is sheer madness, and I hope that even at this late stage they will rethink and will give small business some hope by saying that they have decided to use the present rate of inflation, at the very least, rather than the rate that was relevant when they decided to levy a 5 per cent. increase on business rates. I hope that they will change their minds.