§ 7. Mr. David Ruffley (Bury St. Edmunds)What representations he has received regarding the level of business rates. [99013]
§ The Minister for Local Government and the Regions (Ms Hilary Armstrong)We have received over 270 responses to our consultation paper on a transition scheme to phase in large changes in rate bills, resulting from the revaluation due on 1 April 2000. The details of this scheme were announced on 25 November.
We have also received representations from various businesses and special interest groups about the level of business rates.
§ Mr. RuffleyIs the Minister aware that some large out-of-town superstores in my constituency pay business rates equivalent to less than 10 per cent. of their profits, while some small retailers in the centres of Stowmarket and Bury St. Edmunds pay business rates equivalent to about 35 per cent. of profits? That is a huge burden on small business. Will the Minister explain exactly what she will do to reform the business rate regime to help small businesses in my constituency?
§ Ms ArmstrongThe hon. Gentleman is a relatively new Member of Parliament, and so perhaps does not realise that the uniform business rate was introduced by the previous Conservative Administration, which he supported. The hon. Gentleman will also know from what I said on Thursday that the Government are to review how the valuation is conducted and how it kicks in. I look forward to his comments then. However, I remind him that, because of the impact on small businesses and to take account of the points that he has raised, we have introduced a transitional scheme that benefits small businesses more than large ones.