Business Property Relief: Family-owned Businesses

The reforms to business property relief maintain significant relief for owners of business assets. That is beyond what is available to others and is more generous than at any time under Margaret Thatcher, for example, when the rate of relief was a maximum of 50% on all business assets, including the first £2.5 million. I do not think that Conservative Members would argue that we did not see growth in the private sector while Thatcher was in power.

I agree with the Minister, of course, that Margaret Thatcher really was the sunny uplands of this country.

Small and medium-sized enterprises provide the backbone for our economy in Bromley and Biggin Hill. Many of those businesses are still family owned, suffering from the slew of taxation from this Labour Government. Family Business UK’s analysis, published just last month, said that 57% of businesses are still suffering from the business property relief that, despite the slight U-turn that the Minister alluded to, is still impacting their business. Does the Minister agree that the best way to growth is to support small businesses and not to tax them out of existence?

I am glad that the hon. Gentleman acknowledges that while Margaret Thatcher was in power she was taxing such businesses through business property relief more than this Labour Government. We have a fair and balanced approach when it comes to making sure that we can raise revenues from the very largest businesses, including agricultural businesses, so that we can sustainably support the reduction in borrowing that this Government are bringing about.

Hundreds of small family businesses across Cornwall will soon be subject to a significant increase in their property costs as a result of the Valuation Office Agency’s decision to reclassify serviced offices, business centres and co-working spaces. Will the Chancellor arrange for me to meet Treasury officials and the VOA to discuss how the impacts of that reclassification may be mitigated?