Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2009

I should declare that I am chief executive of London First—a non-profit-making business membership organisation. The 2010 revaluation is based on rateable values at April 2008 and, therefore, as has been noted, reflects property values at the peak of the market. Given that boom has since given way to bust, these figures are a long way from current reality. London will see a 32 per cent increase in its overall rateable value. However, this is not a homogenous rise across London. In the run-up to 2008, the West End in particular experienced soaring rents and, therefore, will experience a huge hike in business rate bills. Many properties’ rateable values will increase by up to 150 per cent. I should be grateful if the Minister could clarify some of these numbers, because mine are slightly different—although they may relate to the application of a negative RPI, if I understood the Minister’s introduction. The Government’s proposed transitional arrangements will mean that the related business rate increases will be phased. However, under these arrangements they still propose that the business rates for properties with large increases in their rateable values will increase by 12.5 per cent—although I think the Minister suggested 11 per cent—which is thoroughly unhelpful, just at the time that we are all seeking slowly to climb our way back out of recession. Furthermore, 20,000 London properties will experience a 30 per cent increase over the next two years. The Government could help these businesses and the fragile economic recovery by freezing business rates in 2010. I note that both the CBI and the British Retail Consortium, which represent businesses across the UK, recommend that there should be lower upward caps and that this should be funded by smaller decreases. That is an eminently sensible proposal.