Conservative response to Rebecca Long-Bailey at Labour Conference

Commenting, Jake Berry MP, High Streets Minister, said:

“Labour don’t understand the importance of small businesses to our economy – they have announced analogue policies in a digital age. 

“Their plan to deliver free Wi-Fi in town centres is yet another unfunded spending commitment and completely belies the fact that under the Conservatives 4G coverage has increased substantially. We are also committed to helping even the smallest retailers to offer contactless payments.

“Only the Conservatives understand that the best way to help people have a good job and opportunity in life is by backing the local businesses that are the lifeblood of our economy.” 

ENDS

Notes to Editors

The Conservatives understand that the best way to help people have a good job and opportunity in life is by backing the local businesses that are the lifeblood of our economy…

• 4G coverage has increased substantially. ‘4G coverage continues to increase with 58 per cent of indoor premises obtaining 4G coverage (compared to 40 per cent in 2016) and 43 per cent of outdoor geographic areas obtaining 4G coverage (compared to 21 per cent in 2016)’ (MHCLG, Press release, 10 March 2018, link).

• Given a £8.9 billion tax cut to our nation of shopkeepers, meaning that a typical corner shop will pay no business rates. Our major reforms to business rates are worth approximately £9 billion by the end of this Parliament and 600,000 businesses will not pay business rates again. Over the next 5 years the government will provide a further £2.3 billion of support to businesses (HMT, Autumn Budget 2017, 22 November 2017, link).

• Appointed the UK’s first Small Business Commissioner to champion the voice of small business. The new Commissioner will empower small businesses to resolve payment disputes with larger businesses (BEIS, News story, 2 October 2017, link).

Labour’s track record on supporting our high streets speaks for itself…

• Labour still haven’t set out how they will pay for their pledge to give free bus travel to under-25s. They estimate that their policy could cost up to £13 billion, stating that their plan could benefit ‘up to 13 million young people’ saving them up to £1,000 a year (Metro, 12 April 2018, link).

• Labour voted against lifting 600,000 small business out of paying business rates. By voting against Second Reading on the Finance Bill 2016, McDonnell and Corbyn voted against lifting 600,000 small firms out of business rates and 250,000 paying lower rates (Hansard, 11 April 2016, Col.147, Division 233, link).

• Labour encouraged out-of-town shopping centres. Labour abolished a ‘needs test’ in the planning system which allowed councils to block out-of-town shopping developments if there was deemed to be a lack of demand. Labour even acknowledged that this would lead to more out-of-town developments (Conservative Party, Campaign Guide 2010, p.129). 

• Labour made it difficult to park in town centres. Labour forced councils to push up parking charges, discouraged competition between town centres and restricted the number of new car park spaces that councils could provide in new town centre developments (Planning Policy Guidance 13: Transport, March 2001, link).

• Labour called for higher parking charges in government. Labour’s then Local Government Minister called for councils to charge more for parking saying, ‘only one in five councils are using charging to the full potential…[such as for] reducing congestion’ (Daily Telegraph, 19 August 2008; John Healey, Speech to the Local Government Association, 2 July 2008).

Jeremy Corbyn promised not to raise corporation tax for small businesses…

• ·         Speaking to the Federation of Small Businesses on 11 April, Corbyn said ‘When I say any tax rises will fall on the broadest shoulders, I want to make it clear today that we will not raise the small business corporation tax rate’ (Jeremy Corbyn, Speech to FSB, 11 April, 2017, link).

…but Labour’s manifesto contained a pledge to hike the small profits rate to 21 per cent.

• ·         Labour want to hike business rates for small businesses.  The small profits rate, payable by firms with profits below £300,000, will rise less sharply to 20 per cent in 2018-19 and 21 per cent in 2020-21 (Labour press, 10 May 2017, link).