Oral question asked in the House of Lords, by Baroness Hamwee (Liberal Democrat). It was answered on Thursday, 19 March 2009.

Local Government: Business Rates

Question: My Lords, resisting the temptation to ask two of the three previous questioners whether they did not anticipate this situation when the arrangement was introduced in 1990, may I ask the Minister what she can say to local authorities that hear so much from those who are having to give up shop leases because of the level of rates? The vitality of shopping centres suffers very much in this situation.

Answer: My Lords, the best thing that I can say to local authorities that are concerned, as we all are, about the loss of small shops—about 380,000 small shops fall into the category of below £15,000 rateable value—is that the package that was introduced in the Pre-Budget Report has raised the rateable value for exemptions on empty property rates from £2,200 to £15,000 and we want to make sure that small shops and offices know about that and are claiming that relief. I am grateful to the noble Baroness for pointing out that these changes were introduced in 1990.

Secondary information