Non-Domestic Rating (Alteration of Lists and Appeals) (England) (Amendment) Regulations 2017 — House of Lords, 2017-09-11
Topic: Domestic Commerce
Michael Morris (Conservative, Centre-right): My Lords, I pay tribute to the noble Earl for giving us an opportunity to clarify the current situation on business rates. My noble friend on the Front Bench will know that I have been asking questions about business rates for a decade now, so I have got a little bit of background in this issue I am a marketing man by profession: I looked after the advertising and marketing of a number of retail chains prior to coming to your Lordships’ House and, indeed, prior to entering the other place. Twenty years ago, retailing was conducted entirely on the high street or in retail parks; today, one-third of it—and growing—happens online. In this morning’s Daily Telegraph, it is reported that Ipsos MORI has noted that the crash in footfall since 2007 is well over 20%. That is a huge drop. We have seen a number of chains collapse, including Woolworths and BHS. That is a problem. It is that plunge in footfall and the need to invest in digital technology that is creating a big challenge for small and medium-sized retailers. Moreover, there is a forecast from the British Retail Consortium that 80,000 more shops are likely to close. These are horrendous problems I will not repeat any of the points made by the noble Earl in his speech except for one, and that concerns the beta testing stage of the online CCA system early in 2017. We know that there were many shortcomings, but amazingly the whole thing has gone live with nothing having been rectified. I do not think that that is acceptable in today’s world, and I hope that my noble friend can reassure me that something is being done to sort it out I am not sure whether I am right in saying this, but my understanding from Answers given by my noble friend to earlier Questions was that the net result of the changes would be revenue neutral. Now we read in the newspapers and professional journals that the system may not be revenue neutral but something closer to £2.5 billion to £3 billion to the benefit of the Treasury. So I would ask my noble friend to put on the record whether it is the Government’s objective that this system should be revenue neutral. If that is the case, can we have an assurance that, if the figures show that all of a sudden the Treasury has picked up £2.5 billion or £3 billion, somehow or other the money will be fed back into the system? That is absolutely vital for the future I would just add that the latest figures on empty shops, an issue I have raised on many occasions, are now twice as high as they were before the recession and are running at well over 20%, along with store openings and relettings now down by over 20% I would like to add one further point. Why does the UK have the highest property taxes in the whole of the OECD? Property taxes are going up in this country and down elsewhere in the OECD. We are in a situation where they are at 4.1% of GDP; in France, they are at 3.9%, whereas they are at 2.8% in the US and 1.9% across the whole of the OECD. In all of those countries, they have fallen: for us, they are going up As an applied practical economist, I know that to make economic sense of Brexit the UK will urgently need to become one of the most business-friendly places in the world. Achieving that requires a low-tax deregulatory agenda, but we seem to be heading in exactly the opposite direction with these SIs that we are debating. Frankly, if that is the way things are going, that will create considerable peril to all our businesses, particularly those in the retail trade, which after all remains the biggest employer in this country. Those businesses are the wealth creators for our future Before I forget, I must declare an interest, in that I do have a member of my family in the retail trade.