Contribution
Thank you for allowing me to take part in this debate, Madam Deputy Speaker. Having been a member of the Bill Committee—my first Bill Committee in this place—I appreciate being able to contribute on Report in the Chamber.
Southall town centre is well known the world over as a great place to shop for an Asian wedding, with stunning lehengas, saris and sherwani on sale all down the Broadway, King Street and South Road. During the election campaign, I vividly recall seeing two clothes shop workers eating their lunchtime rotis behind the counter. When I commented that business must be good, they both said no. They said that a few years ago, they would never have had time for lunch, and would have worked right up until closing as they were so busy. They told me that they were suffering from being undercut by online retailers because they were paying through the nose for business rates, facing blitz robberies with no police around to respond, and constantly having to chase bigger businesses for payments.
It is ironic that the previous Government have suddenly decided they back local businesses after 14 years of ignoring their pleas. In fact, the only businesses they supported were the rail companies that could not run the trains, the water companies that could not keep our water clean, and, of course, the private sector mates they handed out dodgy covid contracts to. Indeed, the former Prime Minister and former Member for Uxbridge and South Ruislip, Boris Johnson, reportedly used a four-letter word beginning with f when making it clear how little he cared about business.
In contrast, this Labour Government are backing local businesses. We are already ensuring that suppliers pay small businesses within 30 days, and we are cracking down on retail crime, too. The Bill will deliver on our promise to ensure a fairer system of business rates that will help brick and mortar shops like those in Southall to compete with online companies. Finally, we will have a permanently rebalanced system that will stop local shops being undercut and stop the slow death of our high streets and town centres.
New clauses 1 to 3 and amendment 9 are all things that are already happening. We are already publishing a review of these measures as part of next year’s Budget, and there is already discretion for local authorities to look at the higher multiplier rate. Amendments 1 to 6 would add manufacturing to the Bill, which would, in my belief, dilute its effect. We have already prioritised manufacturing as part of the Budget, investing £3 billion into aerospace, automotive and the life sciences industries. We make no apologies for using this Bill to prioritise town centres.
Amendments 7, 8 and 10 all seek to either dilute or delay the changes in the Bill. The Bill already exempts all private schools that are wholly or mainly focused on educating children with special educational needs—that is already in the Bill. We know, however, that 93% of children in this country go to state schools. Politics is about priorities. Just as we are prioritising town centres in the Bill, we are also prioritising those 93% of children. Unless the Conservatives think it is okay to have children in state schools taught maths and science by unqualified teachers, they need to say where they would get the money from otherwise.
Although the Bill is about a fairer system of business rates that will help local businesses, many on the Opposition Benches have raised the issue of employer national insurance. Some 93% of businesses in Ealing Southall are microbusinesses. Most of those businesses will either pay less employer national insurance or the same as they currently pay. Some businesses will pay more national insurance, but that is because the previous Government ran up a massive £22 billion credit card bill making rash promises they did not even attempt to keep, while running public services into the ground. When the final demand letters started coming, they hid them in the back of a drawer and pretended everything was fine. Employer national insurance increases for some businesses will help us to pay for the triple lock on pensions, thousands of extra hip and knee operations, and more police on our streets. Again, unless the Conservatives think it is okay to reduce pensions in real terms, let waiting lists go up and up and give our streets over to criminals, they need to say where they would get the money from.
Before Christmas, I met the brewer Heineken at its pub the Star and Scorpion in west Ealing. Labour has already taken a penny off a pint in the Budget and our decision in the Bill to permanently lower business rates for retail and hospitality businesses will help to further protect local pubs like the Star and Scorpion. Without the Bill, the bars and restaurants of west Ealing and Hanwell would be facing a cliff edge in April, with big increases in their business rates as the sticking-plaster solution that the previous Government came up with ends. The Bill both extends temporary reductions in business rates for high street businesses and introduces a new permanent scheme that will level the playing field between the high street and the internet.
The one tax that the Opposition do not mention is the 10p crime tax: 10p added to every shopping basket due to the impact of shoplifting. The Tories did absolutely nothing about that, but this is a Tory tax that Labour is getting rid of. We are investing in neighbourhood policing, scrapping the Tory shoplifter charter that allowed thefts under £200 not to be investigated, and bringing in a new offence of assaulting a shopworker.
The Conservatives had 14 years to help out local businesses like those in Ealing Southall. Instead, they trashed our economy, destroyed public services and stifled business growth. The Labour Government are clearing up their mess. Through this Bill, we are ensuring fairer business rates for shops, restaurants and bars on Ealing Southall’s high streets.