Rating and Valuation — House of Commons, 2020-02-04
Topic: Macroeconomics
Alexander Jesse Norman (Conservative, Centre-right): Let me start by responding to the comments from the Opposition Front Bencher, the hon. Member for Oxford East (Anneliese Dodds), who raised a series of questions of a technical nature. She asked why the Government are continuing to use RPI versus CPI, and I was grateful that she acknowledged that the policy has been one of slow alignment. In September 2019, the Chancellor announced that the Government and the UK Statistics Authority would jointly consult on proposals to address shortcomings in RPI. We expect that consultation to launch at the time of the Budget. I am sure the shadow Minister is aware—I think she hinted at this—that since 2010 the Government have been reducing the use of RPI, and we will continue to do so where practicable. She asked why primary legislation had not been used in the context of this instrument. The answer is that the Government have made a commitment that this will be permanent and that they will use CPI for the uprating of business rates. We have also said—if we have not, let me say it now—that we will consider introducing primary legislation in due course, but the parliamentary timetable is very congested and we have to make sure it can fit alongside many other items, including items to which I am sure she is thoroughly committed The shadow Minister talked about raising thresholds. As I think she will acknowledge, we have increased the rate for the retail discount, and the pubs discount has been set at a high level and so includes a great number of pubs. She asked about the review. We have said we will launch a review in due course. I will not go further than that, although at this time of the year it does not require the application of rocket science to see when "in due course" might ultimately land Finally, the shadow Minister talked about local government. Of course, she is right to focus on the importance of business rates to local government funding. I had the British Retail Consortium in to see me only recently, and I talk closely with all those affected by the rate. As she will be aware, the Secretary of State for Housing, Communities and Local Government published the provisional 2020-21 local government finance settlement in December, which set out an additional £2.9 billion in core funding, as announced in the spending review 2019. As she also knows, however, it is not just a matter of what funding is provided by central Government; it is also a matter of what core spending power is available to local authorities I am pleased to welcome the hon. Member for Liverpool, Wavertree (Paula Barker), who made her maiden speech. I congratulate her and welcome her to her place in the House. She got wonderful support from her colleagues on the Opposition Benches, which is always a comfort when doing one’s maiden speech, so I congratulate her on that as well. She described herself as a woman with an opinion. In this House, anyone who can describe themselves like that will go a long way, so I congratulate her again. Just to correct the public record, however, I hope she will recognise that Tory support for Liverpool goes back a long way. Michael Heseltine was recently given the freedom of the city in recognition of his support, and I think that everyone can see the difference and the energy the city has at the moment. The Government are seeking to support it and the mayoralty in many different ways Question put and agreed to.