Autumn statement a missed opportunity on business rates, says Simon Danczuk MP

Simon Danczuk MP

Simon Danczuk MP has accused the Chancellor of kicking much-needed reform of business rates into the long grass following George Osborne’s autumn statement today.

After business rates were widely trailed in advance to be at the centre of Osborne’s plans for economic recovery, Simon Danczuk said he was disappointed they were relegated to a mere footnote with a vague promise of reform taking place in 2016.

“This tax has caused enormous damage in Rochdale, is responsible for many small businesses going bust and is holding back our high street,” he said. “George Osborne has turned this tax into a monster in this Parliament. He’s cancelled a long overdue revaluation to bring rates back in line with property values, added £5billion on to the rates bill and introduced the biggest increase in 20 years.

“He should have apologised for these disastrous decisions and taken immediate action to reintroduce the revaluation and make sure reform starts now. Instead all he offered was a small discount that’s swallowed up in the two per cent increase on rates that he announced. I cannot understand why he would trail such a feeble announcement as major economic policy.”

As chairman of the All Party Parliamentary Group on small shops, Mr Danczuk added that business rates remained the main barrier preventing investment on the high street.

“Because the Chancellor cancelled the revaluation, business rates in many northern towns like Rochdale have completely lost touch with economic reality,” he said. “On Yorkshire Street we have a fish’n’chip shop with an annual rent of £6,000 and an eye watering business rates bill of £19,000. Its Government tax policy that’s making small businesses like these no longer viable and that’s why we need radical reform. Not tinkering in the margins."