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PMQs: Theresa May suggests more business rate help Sajid Javid: Budget help for firms hit by rates rise
(35 minutes later)
Theresa May says ministers are looking at how to help firms "particularly adversely affected" by controversial changes to business rates. The government has promised measures in the Budget for firms facing the "steepest increases" in business rates.
The prime minister acknowledged there were "particular concerns" as a result of the revaluation of premises, which comes into force on 1 April. Communities Secretary Sajid Javid said it was "clear to me that more needs to be done to level the playing field and make the system fairer".
There has been a fierce campaign against the move, with claims some firms face "eye-watering" rises. A fierce campaign has been waged against rises, which ministers say will affect a quarter of business in the UK.
The government says most companies' rates will fall or stay the same. Labour said the government had allowed a "crisis" to develop. The rate change is due to happen on 1 April.
Communities Secretary Sajid Javid said the government expected to announce measures to help businesses facing "particular difficulties" in the Budget, which takes place on 8 March. Businesses pay tax based on the rateable value of their property, including pubs, restaurants, warehouses, factories, shops and offices - and these values are being reassessed for the first time since 2010, meaning changes to the amount many firms will pay.
Mrs May was asked about the changes during Prime Minister's Questions by Green Party MP Caroline Lucas, who said the changes would "devastate" the economy in her Brighton Pavilion constituency.
The PM said it was "right" for rates to change to reflect changing property prices, saying the system was underpinned by fairness.
She added: "We also, though, want to support businesses and recognise that, for some, business rates will go up when these revaluations take place."
Mrs May also said: "That's why we have put significant funding in place for transitional relief.
"But I recognise that there has been particular concern that there will be some small businesses that are 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 those hardest cases."
Business rates explained
Businesses pay tax based on the rateable value of their property, including pubs, restaurants, warehouses, factories, shops and offices.
These values are being reassessed for the first time since 2010, meaning changes to the amount many firms will pay.
In the face of opposition from business groups and some Conservative MPs, the government has defended the reforms and said 2017-18 "will see the biggest ever cut in business rates" and "three-quarters of all businesses, right across the country, will see their rates either fall or stay the same".In the face of opposition from business groups and some Conservative MPs, the government has defended the reforms and said 2017-18 "will see the biggest ever cut in business rates" and "three-quarters of all businesses, right across the country, will see their rates either fall or stay the same".
Asked afterwards whether the PM was proposing new cash to mitigate the impact of the changes, Mrs May's spokesman said she wanted to ensure the transitional relief was going to the right areas. But Mr Javid told the House of Commons he was "acutely aware" of problems for some others, saying: "There are clearly some individual businesses facing particular difficulties."
Communities Secretary Sajid Javid faced questions about the revaluation in a Commons debate on local government. He added: "I have always listened to businesses and this situation is no exception. It's clear to me that more needs to be done to level the playing field and make the system fairer."
He said that, while three-quarters of businesses would see business rates lowered or kept at the same level, he was "acutely aware of the impact on the quarter that will feel increases". Mr Javid promised help for those "facing the steepest increases".
He added: "If your rates are going up, it's no consolation to hear that others' will be going down." Business rates explained
'Crisis' He added that he and Chancellor Philip Hammond were looking at "how best" to proceed, telling MPs: "We expect to be in a position to make an announcement at the time of the Budget in just two weeks' time."
Mr Javid said he and Chancellor Philip Hammond were looking at "how best" to proceed, telling MPs: "We expect to be in a position to make an announcement at the time of the Budget in just two weeks' time." At Prime Minister's Questions earlier, Theresa May was asked about the changes by Green Party MP Caroline Lucas, who said the changes would "devastate" the economy in her Brighton Pavilion constituency.
For Labour, shadow communities secretary Gareth Thomas said there was a business rates "crisis", saying it had taken Mr Javid "apparently until now to grasp its seriousness". The prime minister said it was "right" for rates to change to reflect changing property prices, saying the system was underpinned by fairness.
The chairman of the Treasury Select Committee, Conservative MP Andrew Tyrie, has written to Chancellor Philip Hammond to ask for "the facts" about the changes. She added: "We also, though, want to support businesses and recognise that, for some, business rates will go up when these revaluations take place."
Mrs May also said there was "significant funding in place for transitional relief". For Labour, shadow communities secretary Gareth Thomas said there was a business rates "crisis", saying it had taken Mr Javid "apparently until now to grasp its seriousness".
Asked whether the government was in "chaos" over business rates, the prime minister's spokesman said: "I don't think it is chaos. We've set out our plans to provide a transitional relief fund to make sure that those affected by the rise in business rates have a smooth transition."
The chairman of the Treasury Select Committee, Conservative MP Andrew Tyrie, has written to the chancellor to ask for "the facts" about the changes.
He said there were "several problems" with the proposals, citing "considerable concern" about the impact on smaller firms.He said there were "several problems" with the proposals, citing "considerable concern" about the impact on smaller firms.
The Federation of Small Businesses said it welcomed the PM's "intervention" to tackle what it called an "extremely worrying situation for many small businesses".The Federation of Small Businesses said it welcomed the PM's "intervention" to tackle what it called an "extremely worrying situation for many small businesses".
Also during Prime Minister's Questions, Mrs May defended the government's record on the NHS, during fiery exchanges with Jeremy Corbyn.
After the Labour leader said the government had left the NHS in a "state of emergency", the prime minister said his party would "bankrupt the economy" leaving no money to spend on it.
Mr Corbyn also returned to his previous claim that a "sweetheart" funding deal had been offered to Surrey Council.
Mrs May said this claim had been "destroyed" and told him to apologise.