Mike Martin

It is a pleasure to serve under your chairship, Ms Jardine. I thank the right hon. Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson) for securing what is probably the most important debate we could have to rejuvenate our town centres. As some hon. and right hon. Members have touched on, town centres are not just a series of business transactions but the centres of our community, where people go to meet friends or to be part of a place where they can do familiar things. It is the social glue that is created by town centres that is so important; once that is lost it does not come back. In every town centre there is a mix of retail, leisure and hospitality. We have to get the balance right between those three things, because often someone will come in for one of the legs of the stool, as it were, but stay to do something else—thus they stay longer and have more touchpoints with their community. Business rates are the foundational tax rate that affects those three things. If business rates are not right, we are not incentivising the right mix in the community—because business rates affect those three things slightly differently—and we are undermining the support that those three things give to the idea of the town centre being a social glue. I am not going to talk about all three things, but I will talk about hospitality. I start with Fuggles bar, which is around the corner from my house in Tunbridge Wells. Fuggles is great; it is run by Alex and has an extraordinary selection of craft beers, including local ones brewed in the constituency, and a number of gins, so I occasionally visit. Alex employs about 18 people. A number of Members have spoken about business rates relief being cut from 75% to 40%. That single change, announced at the Budget, has pushed up the cost of Alex’s business rates by 50%. To that we must add a number of other costs that have risen at the same time, such as national insurance, and before that, energy costs. An independent bar that employs 18 people, many of them part time—as we know, the NI increase hit many businesses that were employing part-time people in particular—finds it really hard to stay afloat. Alex is a member of the Tunbridge Wells hospitality leaders forum, which I meet regularly. His story is the same as the rest of the members of the forum’s. We were so concerned that together we submitted a submission to the Treasury’s consultation on business rates, and I implore the Minister to look that up and read it. I will not go through everything in the consultation, but there are two things I will focus on. The first is investment. The current business rates formula penalises investment. If someone invests in their premises, the rateable value goes up and their taxes go up—it is a tax on investment. The other is online. Amazon pays about 0.37% of its retail sales in business rates. Fuggles pays 3%. That is the exact opposite of what a tax system should do. I implore the Minister to look up the Tunbridge Wells hospitality leaders’ submission to the Treasury’s consultation. There are a lot of good ideas in there, and I hope that he takes them on board.