Business Rates

I beg to move,"That this House expresses concern over the above-inflation rises in business rates since April 2009 and plans for the 2010 business rates revaluation; notes that all rate-paying businesses have already been hit by five per cent. above inflation rises and that the withdrawal of transitional relief has disproportionately hurt small businesses already struggling to cope with the recession; further notes that regulations relating to the business rate partial deferral scheme are yet to be placed before the House; observes that the additional burden of empty property rates further undermines struggling businesses; expresses disappointment at the failure in the Budget to help businesses and local authorities by making small business rate relief automatic as in Wales; believes that councils should have the power to levy local business revenue rate discounts and be rewarded for local regeneration and business rate growth; and further notes that the retrospective business rates being imposed on firms in ports, many involved in the car industry, will hit firms with a £124 million increase in taxes, risking insolvency and job losses." Today's debate is of real importance to businesses across Britain, because the problem relating to business rates and business rate rises is so acute. This country has been in recession since last year, and the impact on businesses and employment has been dramatic. In fact, the most recent figures from the Federation of Small Businesses show that 120 small businesses close down every day. Above all, in the credit crunch even firms with perfectly good business models are going bust, not because they are loss-making, but just because they cannot get the liquidity that is needed. We recognise the problems with cash flow, which is why we have been pressing Ministers to go for our bigger and bolder national loan guarantee scheme to help provide certainty for businesses that are lending credit to one another. Members would have thought that Ministers in the Department for Communities and Local Government who look after business rates would have taken particular care in their decisions that affect businesses, but they would have been wrong. In the past few months, when it comes to business rates, struggling businesses across Britain have seen Ministers press ahead with decision after decision that can only make their liquidity situation worse. First, at the end of last year, Ministers confirmed that all companies paying business rates would see a 5 per cent. inflation-busting rise. By the time it was due to hit businesses and our economy, economists were discussing whether deflation was a concern, and the Bank of England was embarking on its quantitative easing. However, Ministers refused to reconsider their decision. In fact, they even refused to prepare an impact statement that considered how such massive, inflation-busting rises would hurt businesses, employment and the economy.