Business Rates

Let me briefly address the issue of levying local—[Interruption.] Well, I think I have addressed the hon. Gentleman's points and the real issues around them. I do not see the point of repeating it all again. I have been pretty clear about where we believe the difficulties lie. As regards councils having the power to levy local business rate discounts, I have said that we already have several rate relief schemes targeted at businesses, amounting to something in the region of £900 million in 2008-09. Further discounts—this is a point that the Opposition need to answer—would mean that the amount collected would be smaller, so we would have to ask local authorities to contribute more, which would have an effect on council tax payers. This Government have a great track record in delivering funding and policies that will play a major part in regenerating our cities and supporting our local authorities to ensure regeneration and economic renewal. It is absolutely clear that we understand the impact of the business rates system on businesses and that, particularly because of the international credit crunch and economic slowdown, we are looking at the effects on people and businesses. I shall very briefly touch on the issue of businesses in ports. As I have said, my right hon. and noble Friend the Secretary of State has already taken action. As to the allegation that the revaluation was somehow a desk-top exercise—it was made by the hon. Member for Meriden (Mrs. Spelman), who I see is not listening to a word I am saying, but there we are—it was, in fact, based on more than 300,000 actual rents collected by the Valuation Office Agency and analysed for the revaluation. I wanted to clarify that point. Finally, it is the Government's package of measures—the introduction of the business rates deferral scheme, the small business rate relief scheme, a fairer revaluation scheme and so forth—combined with the real help offered to businesses through structured support at local, regional and national levels that will make the difference. In contrast, the Opposition offer nothing but ill thought out ideas and empty promises. That is why I urge the House to reject the Opposition motion and support the Government amendment.