Wednesday 22 May 2019

Newspaper column 22 May 2019 - Looking at business rates


Last week in Parliament was another varied time. Among other things I questioned the Department for Work and Pensions Minister about support available for self-employed people claiming Universal Credit. I also welcomed Cornish apprentices from RNAS Culdrose to Parliament. I also spoke in the Wesmtinster Hall Debate about the future Shared Prosperity Fund which will replace EU funds in places like Cornwall, as well as hosting an event on the persecution of Christians internationally with the Bishop of Truro.

I also chaired a round table discussion in my role at chair of UK Hospitality APPG with leading representatives of the Tourism and Hospitality sector looking at the issue of business rates.

The hospitality sector is incredibly important to the UK’s economy; it is the third largest employer in the UK, with over 3.2million employees. This is 9% of the total jobs in the United Kingdom and the sector is a top 7 employer in every region.  With its importance to the economy of the whole of the UK, we must ensure that the needs and the concerns of the sector are properly considered and addressed.

One thing that is clear is that the current system needs reform. As it stands it is out of date and does not reflect the way business and particularly retail has changed.

It is all very well saying that something needs reform, but the challenge is what should replace it- some suggestions have included introducing new types of tax on business, things like a so-called ‘tourism tax’ or a sales tax.

While I agree that the current business rates system needs to be reformed to more accurately address how businesses operate today I do not agree with introducing new and additional taxes on businesses, which I feel would be counterproductive in terms of our economy, which we need to see continue to grow.

Experience shows that supporting business through lower and more simple tax system is good for the economy. Supporting businesses to grow and invest is what provides the economic environment that produces economic growth and job creation.

Placing greater taxes on businesses will instead stifle the growth and investment we need.
The tourism and hospitality sector is vital to our local economy, accounting for 37,000 jobs in Cornwall and sustaining further jobs in other sectors dependent on hospitality and tourism. Tourism alone brings £1.8bn per year into the Cornish economy.

Increasing the tax burden, by way of a Tourism Tax or something similar, will not be good for Cornish jobs and investment.

So, while we need to reform the way we tax business, it should be towards a more simple system and must not increase the tax burden on them. I will continue to work with the Tourism and Hospitality industry to seek the reforms we need.

My team and I are here to serve the whole constituency and work hard to make a real difference to the lives of everyone needing support. The office is open to the public Monday – Friday 10.00am – 4.00pm (no appointment necessary). If there is an issue you would like my assistance on then please, either visit the office or contact me on either 01726 829379 or office@stevedouble.org.uk. Additionally, I hold regular, appointment only, advice surgeries across the constituency. Dates of these can be found at: www.stevedouble.org.uk/events