Uniform Business Rate (Hansard, 26 March 1996)

§ 1. Mr. Whittingdale
To ask the Secretary of State for the Environment what recent representations he has received about the future of the uniform business rate. [20934]

§ The Secretary of State for the Environment (Mr. John Gummer)
I have recently received a report entitled "Improving the Rating System", which was sponsored by the Royal Institution of Chartered Surveyors.

§ Mr. Whittingdale
Does my right hon. Friend accept that the burden of business rates bears particularly heavily on small firms and that that is a major factor in the closure of a number of small shops in Maldon high street in my constituency? Is he aware that the Prime Minister's recent commitment to listen to the concerns of small firms about the impact of business rates is especially welcome? I urge him to give that the highest priority.

§ Mr. Gummer
I agree with my hon. Friend. He will note that we have blazed a trail in the rural White Paper by suggesting that the single shop in the small village should have special consideration in that area. We are considering that matter urgently. I point to the fact that the report from the Royal Institution of Chartered Surveyors suggests that we should continue to have a national non-domestic rate. My hon. Friend will remember the old system, whereby local authorities—particularly Labour-controlled local authorities—placed large burdens on businesses. Those businesses are now protected by this system.

§ Mr. Barnes
Why has the burden of the standard spending assessment moved away from the revenue support grant to the national business rate and to council tax, causing difficulties for many people? Could the district of north-east Derbyshire have a standard spending assessment arrangement similar to that of Westminster so that everyone could have a return of £700, and presumably businesses could benefit also?

§ Mr. Gummer
The system is precisely the same as that which applies in Tower Hamlets, Hackney or Westminster. It is an arm's-length procedure that provides 816 an SSA which is responsive to the needs of the area, as the hon. Gentleman knows perfectly well. The Labour party has also suggested that a higher proportion of the weight of local spending should fall upon the resources of the local authority.