Relief from Non-Domestic Rates for General Stores etc. in Rural Settlements: England and Wales

Part of Orders of the Day — Finance Bill – in the House of Commons at 7:45 pm on 23 January 1997.

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Photo of Mr David Rendel Mr David Rendel , Newbury 7:45, 23 January 1997

I am delighted to have the opportunity to speak to amendments Nos. 29, 30 and 31, which go to the heart of the decision on how discretionary or mandatory relief should be given to local businesses. I think that all hon. Members are aware of the needs of small businesses in rural areas and of the benefit that the Bill may bring to some of our smaller rural communities, but the way in which that benefit is to be given has to be questioned. The aim of my amendments is to enable all the rate relief to be given on a discretionary basis rather than the mandatory basis contained in the Bill.

One of the most interesting aspects of the Government's decision to make some of the relief mandatory is that, in other areas of their business, they have been keen to try to ensure that where Government money is handed out it is targeted on those who are most in need. That has happened in the past with discretionary rate relief and, more recently, with the Government's benefit legislation. It seems odd that in this instance the Government are moving away from targeting the rate relief on those who are most in need and moving towards a generalised policy of giving rate relief of at least 50 per cent. to certain types of business even if some of them do not need it.

Once again, we come back to the important principle of subsidiarity, which lies at the heart of my amendments. In Committee I said that it was odd that the Government should go for a half-and-half policy; my point was not properly answered. Half the rate relief for post offices and general stores is to be mandatory and the other half is to be discretionary.