§ Mr. FearnTo ask the Secretary of State for the Environment if he has any plans to extend the phasing in of business rate increases under the transitional payment schemes for small businesses.
§ Mr. Key[holding answer, 30 October 1990]: We have proposed that the limit on rate increases for the non-domestic part of small composite properties, such as small shops with living accommodation attached, should be reduced to 10 per cent. in real terms from 1991–92. This will benefit around 95,000 properties. Otherwise the existing transitional arrangements will remain unchanged.
The Local Government Finance Act 1988 provides powers for a further transitional scheme once the present arrangements end in 1995 and my right hon. Friend will certainly be prepared to use those powers if, after the next revaluation, he considers it necessary to do so. However, it is too soon to tell at this stage what sort of further scheme, if any, would be needed because it is impossible to predict what will happen to rent levels, from which rateable values are derived, over the next five years.