Prime Minister commits to a review of business rates

Speaking at the CBI conference today, Boris Johnson reiterated plans to review business rates, particularly for small and medium businesses, after making the promise during a radio phone-in with a nursery owner last week.

However, hours after Mr Johnson's speech, the leader of the Liberal Democrats Jo Swinson, also speaking at the CBI conference, promised to scrap business rates altogether. She said the party would replace business rates with a commercial landowner levy, based on the value of land only.

• MPs told action is needed on business rates 
• Nurseries renew call to scrap business rates for childcare providers

Radio phone-in

On Friday, Mr Johnson was questioned by a nursery owner during a BBC Radio 5 Live special programme with presenter Rachel Burden.

Owner of Beeston Nursery in Nottingham, Roopam Carroll asked Mr Johnson on Friday what he would be doing to protect early years settings, such as her own, from closing.

She explained to him that there was a 'real crisis', as Government funding to deliver childcare places does not meet delivery costs.

Ms Carroll, who is losing 40p per hour, per child, said she was really worried about future increases to national minimum wage and pension contributions as the figures ‘don’t add up’ and her ‘business is in jeopardy’.

In response, the Prime Minister said the Conservatives planned on reducing business rates for businesses such as Ms Carroll’s and would be 'funding childcare'. He also mentioned that the political party is looking at funding for younger children.

When he was asked what current funding rates were, Mr Johnson was unable to provide an answer. He was also unable to confirm whether the Conservatives would increase the rates paid to local authorities and providers.

Responding to the news that the Conservatives would review business rates, National Day Nurseries Association’s (NDNA) head of policy and external relations Jonathan Broadbery said, 'Childcare businesses like nurseries will welcome the news that the Prime Minister is promising a full review of business rates to reduce the burden these place on businesses.

'But there is a very simple solution that has been adopted in Scotland and Wales but not in England, make nurseries 100 per cent exempt from business rates. The promise of a review should not be used to kick this issue into the long grass.

'These rates are an unfair tax on the space nurseries give children to learn, develop and grow and all parties should now commit to zero business rates for nurseries and childcare providers. This would recognise the vital role private, voluntary and independent nurseries are already playing in delivering childcare places, despite the chronic underfunding of the existing policy.'