William Eichler 23 February 2017

Communities secretary to ‘rethink’ business rates revaluation

Sajid Javid has promised to work ‘closely’ with the chancellor in order to support the small businesses who will be hit the hardest by a rates increase.

In a statement on the current business rates revaluation, Mr Javid acknowledged the concerns of backbench Tories and business leaders that some firms would lose out.

He said it would benefit or have no impact on three-quarters of businesses, but he recognised that would be ‘no consolation’ to the other quarter.

The communities secretary drew on his family background to show his commitment to small businesses. He said his father, a shop owner in Bedminster, would have lobbied him for lower rates.

‘Now, growing up above the family shop, I saw for myself the impact that an increase in rates can have on a small business,’ he told Parliament yesterday.

‘A rise in costs lowered the mood of the whole family.

‘If he were alive today I’m sure he’d be first to phone me up and lobby me about the business rate revaluation.’

Mr Javid also said his dad would have made his feelings about the difference in treatment between online retailers and small, high street stores clear.

‘I can just imagine him telling me about the treatment of large online retailers and how that compares with traditional shops on the high street,’ he said.

An announcement about support for the firms facing the steepest rates increases will be ready for the budget in two weeks, he concluded.

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