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Business Rate Supplements Bill
5:15 pm
Bob Neill (Shadow Minister, Communities and Local Government; Bromley and Chislehurst, Conservative)
I seek to raise two issues with the Minister. I suspect that other hon. Members will wish to speak on them.
We are now, in shorthand, dealing with the question of the thresholds. The Minister will know from the evidence given to the Committee that there is some concern about how a threshold is arrived at. One knows the Government’s intention to set a threshold of a rateable value of £50,000, but we are concerned about what will happen in future, particularly in the light of the fact that there will be a revaluation of business rateable values in 2010. I understand that the base data for that will probably go back to 2008.
Will there be enough flexibility to reflect the changed economic circumstances in a swift and timely manner? The particular concern, of course, is that for many businesses cash flow is now the key to survival. They would not want to be faced with a likely increase in burden simply because of a fiscal drag in the threshold that might suck them in. They will want some reassurance on that point.
Some who gave evidence suggested that the figure of £50,000 should be included in the Bill. Indeed, an amendment to that effect has been tabled by the hon. Member for North Cornwall. I am not convinced, however, because doing so would make it difficult to assist business by raising the threshold to take people out of tax. Primary legislation would be required, which is why I am not particularly attracted to that argument. However, the underlying concern is real; businesses will want a little more detail and more reassurance from the Government.
The second point, which is related, is a genuine inquiry; it may not take us any further. I wonder whether any thought has been given to small companies being treated under the section 382 provisions of the Companies Act 2006, when considering whether they met the other tests for threshold liability.