Emma Reynolds has been grilled by GB News on Labour’s latest plan to cut business rates for hospitality venues, assuring that the plan is “fully funded”.
Speaking to GB News Breakfast, the Chief Secretary to the Treasury was pressed on the review into the funding of the 20 per cent cut.
Ms Reynolds told GB News that the cut will be funded in “two principal ways”.
She explained: “The first is that we’re going to review the business rate relief on those businesses on the high street that cause social harm, such as vape shops, and the second way is that we’re going to crack down on those online businesses that at the moment are not paying VAT and should be.
“This has been a problem for some time, and we’re consulting at the moment on the best way to tackle that, but that will also raise revenue. We will set out those details in the Budget, but this will be fully funded.”
Challenging the Labour minister, Ellie hit back: “But that’s a review and clamping down, that’s not cold hard cash is it? This is just pie in the sky thinking?”
Disagreeing with Ellie, Ms Reynolds responded: “That will result in hard cash, and as Chief Secretary of the Treasury, in charge of the money these days, then I can reassure you that it will result in revenue raising.
“And the new policy will come in in April next year and cost around £100million a year.”
Emma Reynolds has been grilled by GB News host Ellie Costello on Labour’s plan to cut business rates
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GB NEWS
Recalling the level of business rates under the previous Tory Government, host Stephen Dixon told Ms Reynolds: “You’re reducing them by 20 per cent, but they went up by 75 per cent under this Government.
“So in fact, they’re still seeing an increase of 55 per cent over the past couple of years?”
The Labour MP told GB News: “Well, the announcement today of the 20 per cent cut is in addition to a 15 per cent cut that came in already in April and a £4billion support package, which was announced by the previous Chancellor in January this year.
“That capped bill increases, and also at the budget, we announced a freeze on bills from next year too. So there are a number of measures here which will help pubs.”
Andy Burnham said the business rates change would save the average pub some £1,100 per year | GETTY
She continued: “And we know that pubs have been under tremendous pressure, we’ve seen 7,000 pubs closed since 2010.
“So this is the start of us making sure that we help these businesses that are the beating heart of our communities, that bring people together.
“Andy Burnham is prioritising these businesses in a way that he did when he was Mayor of Manchester, and it shows an intent by this Government to help these sort of community assets to thrive.
“We want these pubs and live music venues and clubs to thrive all year round.”
Grilling Ms Reynolds on her claim that the Government will review rates on certain shops, host Stephen Dixon asked: “Why are vape shops causing social harm?”
She told GB News: “Well, vapes are something that causes social harm. We know that too many young people are attracted to vaping, and we don’t fully know the long-term health implications of vaping either.
Ms Reynolds told GB News that the Government wants hospitality venues to thrive ‘all year round’
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GB NEWS
“I think when they were initially introduced, they were thought of as a healthier alternative to smoking.
“I think that perhaps given the scientific evidence we are reviewing, whether that is the case, and we know that there are plenty of young people who are attracted to vapes who might not be tempted to smoke in the first place.”
In a statement, Andy Burnham said: “For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”