Business Rates

I think that hon. Members of all parties would agree that we are living in unprecedented economic times and that many small businesses probably feel as if they are facing an onslaught from all sides. We have already heard that an accountancy firm has predicted that nearly 34,000 small businesses—120 a day—will close in 2009 and that difficulties paying their business rates may well be a factor for some of them. However, it may be that businesses have suffered from falling incomes, unaffordable rents, delayed payments from suppliers or trouble paying their tax liabilities. Their difficulties might be compounded by personal economic problems, too. If Back Benchers get the opportunity to contribute to the debate—if I carry on for as long as the two previous speakers, we will move straight into the concluding speeches—I am sure we will hear about similar experiences from businesses all over the country. The motion at least provides us with an opportunity to raise constituency experiences. I find it slightly odd that the Conservatives' motion is drafted so narrowly. It deals specifically with business rates, rather than with all the other issues that might interact to cause difficulty to businesses. What I also find rather bizarre is the similarity of the wording of this motion to that of a motion that was debated on a Conservative Opposition day on 25 March this year. That motion also referred to the rate of inflation based on business rate rises, the ending of transitional rate relief, support for a move to automatic business rate relief, and the 2010 revaluation. It condemned the ending of empty property rate relief, and highlighted the issue of the ports. I think that there can be only two reasons for that. It is possible that the Conservatives' current spokesperson was not in her post on the earlier occasion, and has either been doing her homework very assiduously or did not realise how similar this motion was to the earlier one. Alternatively, it may well be that the Conservatives have so little positive policy that they have to rotate it, so that it comes around every couple of months on their Opposition days. This is clearly a significant issue, but it would be more helpful if Conservative policy had moved on since that debate at the end of March. That leads me to wonder whether the Conservatives considered the issue to be the main factor affecting businesses, or whether they simply have nothing to say about anything else. I am not entirely sure of the answer to that question. Judging by the last Opposition day debate that I sat through—on housing—I suggest that the Conservatives simply have nothing to say. What the Conservatives have to learn is that if they want to say with credibility that they can form the next Government, they cannot just oppose things; they must propose things as well. It is clear that the motion will not take the debate about local government finance any further forward. I think that, if anything, it will increase confusion rather than providing clarity. It is a critique of the Government's failure to address problems relating to business rates, but it also criticises measures that the Government have tried to take to address those problems. For example, the Minister described the deferral scheme that the Government want to introduce. What the Government had not realised was that the problem had been caused by a double whammy: the very high increases in inflation combined with the end of the transitional scheme. I did not catch what the Conservatives said that they would do differently. They attacked the ending of empty property rate relief, but they did not say what they would do themselves. Another issue was not raised. In some areas, the problem is not just that businesses are in accommodation that will be very expensive if the empty property rates continue. In my constituency, the problem is risk aversion. A massive regeneration scheme is taking place there, part of which involves new accommodation for businesses. What investors will take the risk if they think that a property will be left empty, and that that will cost them a huge amount? What we also heard from the Conservatives was an interesting critique of how the port rating process had gone wrong. Again, however, we gained no clear sense of what they would have done differently, or of how they planned to put the wrongs right.