I am sure that those at the Moody Cow will be delighted not just with more frequent revaluations, but with when they can move on to the digitalisation of business rates, which we are discussing today.
People who make the clarion calls for the abolition, reduction or some other change to business rates will accept that they are already a key source of funding for local authorities, funding essential services, such as adult social care and children’s services. I note that the
hon. Member for City of Durham (Dr Blackman-Woods) did not take the opportunity in wider the context of this debate on business rates to elucidate the Labour party’s policies, but those who seek to reform business rates have an obligation to say how the revenue would be made up.
Many people who talk about business rates reform have at their heart concerns about the health of our high streets, which was mentioned by the Opposition Front-Bench spokespeople and which should worry us all. The Government need to find a way of ensuring that high streets continue to thrive as shopping patterns and behaviours change. I cannot remember a period of more rapid change in how we choose to shop. High streets must clearly transition from bricks-led retail to a bricks-and-clicks online and offline model, with experiential leisure at its heart. High street retailers will be delighted that business rates were slashed by a third in the most recent Budget for retailers with a rateable value of under £51,000, and that formed part of our wider high street package.
Madam Deputy Speaker, I do not know whether you are a fan of “Sex and the City”, but Sarah Jessica Parker recently bemused her Instagram followers on a recent visit to London, when she praised Timpson not just for its key-cutting service, but for its extensive selection of umbrellas, labelling the branch in High Street Kensington tube station as her new favourite shop. Timpson is of course a fine retailer, which is why I was delighted that Sir John Timpson worked so closely with the Government on his report into the future of the high street, business rates and retail. Leading directly from his report, the Government created the £675 million future high streets fund to support high streets and enable them to pay their business rates. Although all those reforms have been welcomed, people will continue to call for a more fundamental review of business rates, and the Government will, of course, continue to keep that under review.
The hon. Member for Oldham West and Royton (Jim McMahon) raised a lot of specific questions about how the digitalisation of business rates will work. I am sorry to disappoint him, but I am unable to answer any of those questions today because the purpose of the Bill is to give HMRC the statutory power, which it currently does not have, to go away and work up that system. How the system will work cannot become clear until we have empowered HMRC, both on Second Reading and in Committee, to start work on it. That is why it is so important that we agree Second Reading this evening, and it is why it is so welcome that the Opposition Front-Bench team support the Bill.
This important Bill is just the start of our cross-party work to ensure that we create a business rates system fit for the future. Many people who run businesses will now be used to making the majority of their transactions online, whether it be paying their VAT bill, paying their utility bills or making sales and buying stock. If we truly want to create a modern tax system that is supportive and friendly to business, we must all work to create an online taxation system, including for business rates, that small businesses and large businesses alike will find workable and useful in driving productivity and efficiency in their business. That is why I have the pleasure of commending the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.