HC Deb 17 December 1996 vol 287 cc749-50
12. Mr. Fabricant

To ask the Secretary of State for the Environment if he will make a statement on the level of business rates charged to small companies, partnerships and sole traders. [7862]

Sir Paul Beresford

As my hon. Friend is aware, the Government have taken steps to ensure the freezing of the business rate for small businesses for the coming financial year.

Mr. Fabricant

Is my hon. Friend aware that many villages—such as Pipe Ridware in my constituency—in which small businesses are located will benefit from that? Is it not the case that about £100 million has been made available from the Budget for that purpose? Was my hon. Friend shocked, as I was, that when the hon. Member for Cannock and Burntwood (Dr. Wright) asked a question earlier, he did not thank my hon. Friend for the £4.5 million capital challenge grant from his Department which will safeguard 1,100 jobs in Burntwood?

Sir Paul Beresford

Some people are ungracious in the extreme, but my hon. Friend is right. Small businesses in towns and villages are congratulating the Government on the move.

Mr. Pike

Recognising that the Government have had to take measures to minimise the effect of next year's revaluation on small businesses, and remembering that the legislation that introduced the national business rate was the second part of the Thatcher legislation that launched the ill-fated poll tax, will the Government now admit that that was the worst flagship ever launched and that they should now scrap all that legislation?

Sir Paul Beresford

That is a bit rich coming from the hon. Gentleman, who, when we were discussing this matter in Committee yesterday, talked about the business rate returning to the local authority setting. I know that he was trying to goad me, but he should recognise the damage that Labour-controlled local authorities have done in the past. Consider previous rates: Camden set a business rate for small businesses of 229.2p; Westminster set a rate of 171p—a dramatic drop; and one of my better-known favourites, Wandsworth, set a rate of 161.1p. We can see in some parts of central London the damage that business rates set by Labour-controlled local authorities did. Shop after shop in Tottenham Court road is shut because of Camden council.