HC Deb 09 May 2000 vol 349 cc642-4
13. Mr. Bill O'Brien (Normanton)

If he will make a statement on progress in (a) the revaluation of non-domestic properties in England and (b) the revising of the distribution of the income from non-domestic council tax payments. [120152]

The Minister for Local Government and the Regions (Ms Hilary Armstrong)

The rating revaluation of non-domestic properties took effect on 1 April. We have no plans to revise the way in which the income from non-domestic rates is redistributed back to local authorities, the current redistribution being based on the size of the local population.

Mr. O'Brien

May I draw attention to the problems and difficulties that small businesses are facing in town and city centres because of the revaluation of their properties? It is incumbent on the Government to ensure that that hardship is reduced in all ways possible. On the redistribution of income from non-domestic rates, may I draw attention to the fact that the Conservative Government withdrew the support to parish and town councils from the industrial rate? Will my right hon. Friend consider reinstating some of that resource to the smaller authorities so that they can generate much greater interest in their communities and provide the necessary services that come with parish and town council status?

Ms Armstrong

The revaluation, which took effect on 1 April, means that the amount paid nationally in rates remains broadly the same, even though rateable values have increased by 25 per cent. That is because the rate poundage has been reduced from 48.9p to 41.6p. My hon. Friend will also want to know that we have recognised the particular pressures on small businesses, so for this year the maximum increase for any small business is 5 per cent., and in subsequent years it will be 7.5 per cent. At the same time, we have raised the level defining a small business to £12,000.

We are to publish a White Paper on rural policy this year, which, as my right hon. Friend the Minister for the Environment said earlier, will allow us to examine governance in rural areas. As part of that we will consider some of the issues concerning parishes. In the local government finance Green Paper, we will also be able to consider the specific issue that my hon. Friend has raised.