Uniform Business Rate (Hansard, 18 March 1998)

§ 1. Mr. Blunt
What representations he has received from Welsh businesses regarding the future of the uniform business rate. [33426]

§ The Parliamentary Under-Secretary of State for Wales (Mr. Peter Hain)
Several representations, as part of our regular consultations with Welsh businesses.

§ Mr. Blunt
When the new national assembly is in place, is it possible that the uniform business rate could be a useful source of revenue for the assembly and Welsh councils, in addition to the resources already provided?

§ Mr. Hain
We are, in common with our counterparts in England, reviewing the business rate. We will consult businesses closely about it because several representations have been made on its reform. I am sure that the outcome will assist Welsh businesses, which are benefiting from a Wales run by a Labour Government.

§ Mr. Rowlands
Is my hon. Friend aware that companies in my constituency are much more concerned about possible cuts in European structural funds? Will he pay as much attention to that as to business rates?

§ Mr. Hain
Yes, I will. My hon. Friend raises an important point because today's news from Brussels is very disturbing. I will make sure, as will the Secretary of State, that Ministers in Wales bat hard for Wales and fight our corner to get a good deal from Brussels on the structural funds. Wales is one of the poorest regions of Europe. Our gross domestic product is only 80 per cent. of the European average, and we should qualify for objective 2 status. Many of our communities in west Wales and the valleys, such as my hon. Friend's constituency, should qualify for objective 1 status. We will bat hard to achieve that.

§ Mr. Llwyd
Given that the Government are supportive of local government, should we not now be thinking of giving more discretion back to local authorities in setting business rates? The problem is that there is often not enough sensitivity to smaller firms and firms that have just started up. Is it not time to remove the dead hand of central Government and to revert to the way things were?

§ Mr. Hain
Businesses have suffered from the dead hand of a Tory Government for nearly two decades. We are consulting small businesses in Wales about the balance of the new structure. There is a demand for local autonomy, but there is equally a concern that Welsh businesses do not suffer costs additional to those in England. We will consult generally on the matter, and with Welsh businesses very closely.

§ Mr. Öpik
Given the difficulties in my constituency following the closure of D. C. Evans in Newtown and 1272 MDM in Machynlleth, is the Minister prepared to discuss the uniform business rate and other issues directly with sacked staff on his forthcoming visit?

§ Mr. Hain
I am indeed willing to discuss those and other issues. I am due to meet the hon. Gentleman in his constituency. Nevertheless, many Welsh businesses welcomed yesterday's Budget, which was an enormous boost for business and enterprise in Wales. It should give businesses cause for optimism amid the many difficulties from which they have suffered in the past 18 years.