HC Deb 02 July 1996 vol 280 cc704-6
2. Mr. Gale

To ask the Secretary of State for the Environment what plans he has to reflect (a) through uniform business rates and (b) otherwise the effect of out-of-town retail developments on high streets and town centre retail businesses. [33933]

The Minister for Construction, Planning and Energy Efficiency (Mr. Robert B. Jones)

Where the presence of an out-of-town centre affects the value of town centre shops, this will be fully reflected in rating valuations. We have just issued revised planning policy guidance, PPG6, which will encourage developers of retail and other town centre uses to locate in town centres. We also encourage local authorities to develop town centre management to improve their competitiveness.

Mr. Gale

My hon. Friend is aware that in Northdown road in Cliftonville, formerly one of the south-east's fine shopping centres, there are now 40 empty shops, and there are more in Margate high street. That situation is common across the south-east of England and the coastal towns. Some of those voids are undoubtedly due to out-of-town shopping. Another out-of-town retail development has just been granted planning consent on appeal. Has not the time now come for my hon. Friend to consider whether the 1995 revaluations were hopelessly unrealistic, and should we not be considering a zero increase in business rates for the coming year?

Mr. Jones

Where there is a material change of circumstances, retailers and others can go back to the Valuation Office and have their cases reconsidered; but my hon. Friend must remember that not only are we restating our principles in PPG6 but we are vigorously carrying that forward into effect.

Mr. Matthew Taylor

Is it not a fact that merely devaluing the rates because a property has been devalued does nothing to compensate shop-holders whose livelihoods may be lost and, more important, does nothing to help the community whose heart is being ripped out by out-of-town developments? Is it not a fact that the latest announcements by out-of-town retailers of further plans for further superstore developments show that the Government's policy to get people back into town centres is failing?

Mr. Jones

Retailers can make as many proposals as they want, but they still have to get through the planning system. My experience during the time I have been doing this job is that it is primarily Labour-controlled and hung councils that ask us to relax our planning approach, admittedly generally in the interests of regeneration, but not necessarily in the interests of the town centres.

Sir John Cope

Is my hon. Friend aware that the existence of out-of-town shopping is not the only reason for giving careful attention to the burden of uniform business rates on small firms, particularly on small retail firms? My hon. Friend should consider it carefully for all sorts of other reasons as well—notably, the system of valuation.

Mr. Jones

The system of valuation has been with us a long time, but that is not to say that it is perfect, and I am happy to consider any suggestions that my right hon. Friend may make for its refinement. My right hon. Friend is right to say that small firms in particular tend to be concerned about the swings that occur between different valuation periods, but the economy has been different at those different points and that has led to changes in the valuations, both in the south-east and, latterly, in outer parts of the country.

Mr. Stevenson

Is not the truth of the matter that the uniform business rate now accounts for a higher proportion of local government expenditure than when the Government imposed the system? If we add to that laissez faire planning policies that have led to more out-of-town shopping centres, has not the small business in inner-town areas suffered a double whammy? Given the seriousness of the situation, is not the Minister's response totally inadequate?

Mr. Jones

The hon. Gentleman should visit Hemel Hempstead in my constituency, where a recent audit of the town centre has shown vigorous and increasing prosperity.

On the uniform business rate, the Government have ensured that the take is limited to the rate of inflation each year. When Labour-controlled councils had control of the business rate locally, they used to rip off businesses every year. If the hon. Gentleman is suggesting that if the Labour party were ever to come to power it would get rid of the uniform business rate, that would mean new taxes with new Labour.