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| Theresa May fails to pledge extra money for local businesses hit by rates rise | Theresa May fails to pledge extra money for local businesses hit by rates rise |
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| Downing Street has quashed suggestions that businesses hit by a rise in business rate could get extra cash – despite reassuring words by the Prime Minister in Parliament this afternoon. | Downing Street has quashed suggestions that businesses hit by a rise in business rate could get extra cash – despite reassuring words by the Prime Minister in Parliament this afternoon. |
| At PMQs on Wednesday afternoon Theresa May said she had “asked the Chancellor and the communities secretary to make sure there is appropriate relief in these hardest cases” – after firms said they would be hit by steep rises in payments. | At PMQs on Wednesday afternoon Theresa May said she had “asked the Chancellor and the communities secretary to make sure there is appropriate relief in these hardest cases” – after firms said they would be hit by steep rises in payments. |
| There was however confusion following the announcement after Ms May’s spokesman later indicated to journalists that the Prime Minister was not signalling additional cash for business rates relief. | There was however confusion following the announcement after Ms May’s spokesman later indicated to journalists that the Prime Minister was not signalling additional cash for business rates relief. |
| Instead, he suggested the Government’s policy was about ensuring the transitional fund already pledged would go to the places it was most needed. | Instead, he suggested the Government’s policy was about ensuring the transitional fund already pledged would go to the places it was most needed. |
| Firms in some areas say a regular revaluation of their properties to see how much property tax they should pay will see them facing sharp increases. | Firms in some areas say a regular revaluation of their properties to see how much property tax they should pay will see them facing sharp increases. |
| The Government postponed the revaluation, which was originally scheduled for 2015, ahead of the general election, meaning rent levels have risen further in a single jump than they otherwise would have. | The Government postponed the revaluation, which was originally scheduled for 2015, ahead of the general election, meaning rent levels have risen further in a single jump than they otherwise would have. |
| At PMQs the Prime Minister was asked by Green MP Caroline Lucas about the hikes. She said hotels and pubs in her Brighton constituency were facing sharp increases of up to 400 per cent due to sharp increases in property values and that the whole property tax system need to be reviewed. | At PMQs the Prime Minister was asked by Green MP Caroline Lucas about the hikes. She said hotels and pubs in her Brighton constituency were facing sharp increases of up to 400 per cent due to sharp increases in property values and that the whole property tax system need to be reviewed. |
| Ms May replied: “Business rates of course are based on the rental values of properties. The rental values of properties do change over time – they go up and down. It’s right that rates change to recognise that. That’s the principle of fairness that underpins the business rates system. | Ms May replied: “Business rates of course are based on the rental values of properties. The rental values of properties do change over time – they go up and down. It’s right that rates change to recognise that. That’s the principle of fairness that underpins the business rates system. |
| “We also, though, want to support businesses, and recognise that for some business rates will go up when these re-evaluations take place – that’s why we’ve put significant funding in place for transitional relief. | |
| “But I recognise that there has been particular concern that there’ll be some small businesses that will be particularly adversely affected by the result of this revaluation. That’s why I’ve asked the Chancellor and the communities secretary to make sure there is appropriate relief in these hardest cases.” | “But I recognise that there has been particular concern that there’ll be some small businesses that will be particularly adversely affected by the result of this revaluation. That’s why I’ve asked the Chancellor and the communities secretary to make sure there is appropriate relief in these hardest cases.” |
| Her statement comes ahead of Communities Secretary Sajid Javid making a statement on local government funding in the House of Commons later, and just weeks ahead of Chancellor Philip Hammond’s planned budget. | Her statement comes ahead of Communities Secretary Sajid Javid making a statement on local government funding in the House of Commons later, and just weeks ahead of Chancellor Philip Hammond’s planned budget. |
| After the exchange Jeremy Corbyn’s spokesperson said there was “clearly” a need for more money for transitional support, and accused the Government of favouring larger firms over small businesses. He failed however to set out a figure or say how the extra support would be paid for. | |
| Business rates tend to hit businesses with high street frontage because they are based on rents, which constitute a higher proportion of costs in retail areas. | Business rates tend to hit businesses with high street frontage because they are based on rents, which constitute a higher proportion of costs in retail areas. |