§ 4. Mr. RendelTo ask the Secretary of State for the Environment how much tax was paid last year by businesses in excess of the amount which they would have paid had not transitional arrangements been in force for those businesses the values of whose premises were reduced at the time of the most recent valuation. [38353]
§ The Parliamentary Under-Secretary of State for the Environment (Sir Paul Beresford)Following the 1995 revaluation, 265,000 businesses saw a reduction in their rates bills in 1995–96. Of that reduction, £1.1 billion was deferred to help cushion the impact of the revaluation on 1.1 million ratepayers who would otherwise have faced substantial increases in their rates bills.
§ Mr. RendelGiven the lack of logic behind singling out those whose business values have fallen to pay welcome subsidies to those whose business values have increased, may we assume that the Minister will now persuade the Chancellor of the Exchequer to remove the transitional arrangement for those whose values have fallen before the next general election—presumably in the forthcoming Budget—as happened before the last general election?
§ Sir Paul BeresfordI had hoped that the hon. Gentleman would refer to the previous rate review, in which the reductions reflected on the businesses in London actually benefited them. In other words, it is swings and roundabouts. Businesses in London and the south-east benefited from the transitional arrangements then, while the reverse is now the case.
§ Mr. John MarshallWill my hon. Friend join me in asking the Chancellor in next month's Budget to look at the impact of uniform business rates on small shopkeepers?
§ Sir Paul BeresfordCertainly, and as a part-time small business man, that matter concerns me as well. It is also of considerable concern to the Department.