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4. What fiscal steps he is taking to support the renewal of high streets.
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This is a Government who are determined to help good councils and businesses to breathe new life into our high streets and town centres. In April we introduced a permanent reduced tax rate worth almost £1 billion for high street businesses, and in July, in the new Prime Minister’s first week, he and I announced a further 20% cut for pubs, social clubs and music venues. This is a Government who will do what they can to help bring a bit of breathing space from the cost of living and the costs of business.
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In Altrincham and Sale West, we know how much our pubs and bars contribute to the local high streets of which we are so proud. That contribution goes beyond their economic impact; they create the sense of community that is so important to local people. The Government’s 20% cut in business rates was indeed welcome to them, but I know from events that I have held locally with the Altrincham business improvement district that they still face challenges and need more support. Will the Chancellor update the House on what more he will do to support all hospitality businesses in constituencies such as mine?
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My hon. Friend speaks up very strongly for his local area. He is right about the importance of pubs, social clubs and live venues, and about the importance of the 20% cut that we announced in July. These are the things that make the places where we live the places that we also love. Later this year the Government will produce our high street strategy, and I encourage my hon. Friend to contribute to the work of my right hon. Friend the Secretary of State for Housing, Communities and Local Government in that regard. I agree with what my right hon. Friend the Financial Secretary said a few moments ago: he should see the move that we made in July as a down payment on further reform.
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The Conservatives will save our high streets, and may I explain to the Chancellor why that is important? Donna, who ran the Beverly Card Company, saw this Labour Government increase her business rates from £135 a month to £840 a month. That is why in February, after 30 years of her running it and having won national awards, the business closed. She will have to make payments for the next four years for those business rates. Will the Chancellor stop trimming, support the Conservative plan and abolish business rates altogether for the 250,000 high street businesses? He needs to stop talking and sounding sympathetic, and actually do something that makes a difference to our high streets.
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What an extraordinary claim! It is hard to take seriously the idea that somehow the Conservatives will save our high streets. We are, of course, concerned about the impact of business taxation. As a Government, we have put in £4.3 billion to help cushion the changes, including in the right hon. Gentleman’s area. We are in the process of taking further steps to review and reform the business rates system, and I will be able to set out more details at the Budget.
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I call the shadow Minister.
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The Chancellor is going around lauding an apparent cut to business rates, but it was his Government who reduced business rates relief for retail, hospitality and leisure from 75% to 40%. If he goes out there and speaks to the owner of any average pub, they will tell him that their business rates have almost doubled. Why will he not answer the question as to why he cannot and will not follow the Conservative plan to cut Labour’s spiralling welfare bill to fund the abolishment of business rates for hundreds of thousands of high street businesses across our country?
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The Prime Minister and I have been clear that we must cut the costs of welfare. On levels of taxation, we had a period of Conservative Government, with low growth and high debt. They crashed the economy with the mini-Budget, and we had levels of taxation that were putting pressure on business, adding to the cost of living. What people have seen under this Government is a willingness to recognise those pressures and to do what we can—not to remove them, but to provide relief where we can. It is about giving people and families a bit of breathing space from the cost of living, and giving businesses a bit of breathing space from the costs of business. That is why the move that the Prime Minister and I made in July for pubs, social clubs and live venues was so welcomed.