Non-Domestic Rating (Preparation for Digital Services) Bill — House of Commons, 2019-05-13
Topic: Domestic Commerce
John Alan Redwood (Conservative, Centre-right): I have declared my business interests in the Register of Members’ Financial Interests, but I am not speaking for them of course; I wish to speak on behalf of the retail businesses in my constituency, as others have already done While I am sure it is well intended and necessary to develop a digital payment system for this tax, can the Minister reassure us that it will not be used as a device by the Treasury and others to accelerate payments and to damage further the cash flow of the shops and other businesses that have to pay it. There is the temptation to use the power of digital technology to have real-time information and then to knock the money off for the tax rather more quickly, when the timing of tax payments may be an important part of cash-flow planning, particularly of retail businesses I hope that Ministers are sensitive to the current position in many high streets up and down the country. Large chains and other sizeable independent shops are struggling because their cost base is very high, and they are competing with online retailers who have nothing like the same cost base in terms of property and staff numbers. They are finding it difficult to manage, and another hit on their cash flow from the Government would not be welcome Rents are now falling in shops generally in England and Wales, the area covered by the Bill. Some retailers are talking about reductions of 25% or 30% as and when the rents on various shop properties become due for review. That relief is welcome to some extent, but it takes time, because many of the leases are for several years and have to mature before renegotiation is possible. Some retailers must go through the agony of a voluntary administration to secure a change in their rents. Another problem is the fact that rents can go down through market processes, but rates never go down, except in the case of very small shops that benefit from one of the exemptions. So the total property cost does not fall at anything like the percentage that the market is suggesting that it should, because the Government element is very fixed. I hope that Ministers will be sensitive to that I realise that this is not the occasion—much as many of us would like it to be—for a proper debate on the balance of business rate taxation and its impact on the retail sector. However, in Wokingham, a lot of money has just been spent on refurbishment and the provision of new and more attractive space in the town centre. Securing the first lettings is an important part of promoting a more active town, but over-avaricious taxation, speedier payments and other changes in how the business rate is handled could offset what will otherwise, we hope, be a good-news story. That is my prime concern, to which I hope the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), will respond. I am delighted that he will be winding up the debate, because I know that he is very conscious of and sensitive to the need to do more to help retailers, and I am sure that he will mention that I should like to follow up my earlier intervention on the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak). It would be good, at some point—it may not be possible today—to have a better idea of the scope of the survey and of the costs that might be involved. Will it be conducted by our own Government officials, or will there be consultancy contracts? If there are consultancy contracts, will we get value, and will we be consulting people who actually know what they are talking about, so that we can end up with something that we are proud of The Government have a duty to taxpayers to ensure that money is well spent. It would be useful to have any more information that the Minister can give about the kind of sums that the Bill might authorise, and what the purpose is. What more can they learn that Her Majesty’s Revenue and Customs does not already know from running perfectly good systems for a range of taxes on people and businesses? A fair amount of them are now handled electronically, so presumably there is quite a lot of in-house experience and expertise that could be drawn on. We always want to make the best possible use of the talent that the Government already have and the information that they have already gleaned both through their own researches and by buying it in through consultancies. I hope that Ministers will have some ability to discipline that work and to ensure that it is timely and provides value for money.