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Budget Resolutions and Economic Situation

In due course. If the hon. Gentleman does not mind, I shall develop the argument about the business community. The Secretary of State, as I am sure the hon. Gentleman heard, said that he had helped business, but all the Chancellor had to offer struggling business was a temporary increase in the small business rate relief. That year-long measure will be a tiny grain of comfort to small businesses, which have seen business rates soar as a result of the botched revaluation. The fact is that the burden of business rates is rising, not falling. It has driven many businesses to the wall, and when the new bills are issued it will sound the death knell for many more. Since Labour came to power the average business rate bill has risen, from £6,500 to more than £12,000. Even when that figure is adjusted to real-terms increases, it is still the case that the increase has by far and away outstripped retail prices index inflation. Measures such as ending empty property rate relief and forcing through questionable revaluations have all tightened the ratchet on struggling businesses. Is it not telling that, according to the Budget, business rate revenues are forecast to rise by £1 billion—an increase of 4.2 per cent? How can that possibly be described as helping business? The cost of the temporary increase in rate relief is a fraction of that, coming in at £210 million. On that basis—let us be very clear—this Budget was proof positive, were it needed, that this Government's priority is increasing tax on businesses. Just as the increase in national insurance is a tax on jobs, which we have pledged to reverse, so the business rate revaluation is a tax on growth. In just a few days' time, the latest business rate revaluation will come into effect. It will send bills soaring through the roof because it is based on the peak of the commercial property market. It will make many businesses no longer eligible for small business rate relief.