Cameron: scrap higher business rates plan for pubs

Conservative Party leader David Cameron is backing calls for the Government to scrap plans that could mean higher business rates for pubs.

Cameron and five other MPs have tabled objections against the Business Rates Supplements Bill, which is set to be debated in Parliament this afternoon.

Under current plans the Bill would mean at least one in seven pubs face an extra £1,000 or more in their rates to promote economic development locally.

Unitary councils — mainly from larger cities — could set a supplementary rate and pubs with a rateable value over £50,000 would be hit.

The MPs' objections - contained in a proposed amendment - says the Bill should not receive its second reading in Parliament.

"Supplementary rates threaten to become another local stealth tax at a time of economic downturn," it says.

The MPs say firms should get to vote on whether they pay more, like in Business Improvement Districts, and "the proposed exemption threshold for small business will be far less generous following the 2010 [rates] revaluation".

The so-called "reasoned amendment" says: "The Bill does not address the problems that local firms are suffering as a result of the Government's business rate rises on empty property and retrospective increases in rates levied on business in the registered ports."

It says the Bill "fails to limit the application of supplementary business rates to the Greater London Authority and the Crossrail project".

Other MPs who lodged objections to the Bill are Eric Pickles, Robert Neill, Paul Goodman, Grant Shapps and Patrick McLoughlin.