Business Rates

It was gobbledegook, because on 8 June I then asked whether any provision had been made in the 2009-10 departmental budget, as outlined in the Red Book, to fund local authorities' administration of the scheme, and I was given a completely different answer about whether an estimate had been made of costs. In that case, the answer was:""The figures cited…setting out the Departmental Expenditure Limits for Communities and Local Government cover costs associated with implementing deferral of business rate payments."—[Official Report, 8 June 2009; Vol. 493, c. 755W.]" Which answer is the right one? Is there an estimate or not? Why cannot the Government be transparent for once? If there is an estimate, why cannot Ministers just be open about it—whatever the cost? If it is in the region of what it cost local authorities to administer the last-minute requirement—another one by Ministers—to put efficiency savings information on council tax bills, it will be about £4 million to £5 million. Surely, that money would be better spent on supporting businesses directly. Instead, it will be spent on dealing with another Government cock-up that undermines businesses throughout Britain. What about the liability of businesses that defer rises and then go out of business or move to a different location? Will they still be liable for payment of the deferred rise? I shall be interested to hear whether Ministers have reached a conclusion on that one. Above all, will Ministers admit that the initiative was really a last-minute decision made to give the impression of doing something and that, in reality, it has achieved nothing of substance months later? Will they admit that they had no consultation with the business community or local government until after the initiative was announced? Ultimately, the scheme is too little, too late. It will not help the worst affected businesses and it is still not in place. On what basis can Ministers possibly think that the business rate deferral scheme is a better option than the Bill introduced by my hon. Friend the Member for Mid-Worcestershire? All that is bad enough, but businesses that thought that some of the rises suffered this year were crippling should know that Ministers have even more lined up for them next year. The 2010 revaluation will be based on rateable values in April 2008—the very time when values were at their peak. Given the bust that we are now in, do Ministers really think that taking rateable values from the peak of the boom will lead to a sensible, fair conclusion on business rates? Do they still plan to go ahead with the revaluation? It is costing the Valuation Office Agency alone £51 million. Ministers may not have done an impact assessment for ending transitional relief, but have they made any assessment of where the worst 2010 revaluation rises will hit businesses and by how much? Alternatively, will we see another rerun of the dangerous shambles that we have had this year, with the transitional relief and the inflation-busting business rates rise?