Enquiry launched into rising Shrewsbury business rates
A new enquiry has been launched into business rates following pressure from Shrewsbury MP Daniel Kawczynski.
The Treasury Committee will scrutinise how government policy has impacted business and economic growth.
Mr Kawczynski has met a number of times with the Chancellor of the Exchequer Philip Hammond to ask for more support for small businesses struggling with their rates.
He said the review is a positive step forward for Shrewsbury and the rest of the county.
"Independent shops and small businesses are at the heart of Shrewsbury, whether it be bakeries, coffee shops or something else, " he said.
"I am campaigning, along with Shrewsbury BID and others, to get business rates reduced so our businesses survive.
"Government is claiming this is the end of the austerity, but I would like to see some of the increased economic benefits spread to the people who are setting up these smaller companies."
Last year Mr Kawczynski went as far as inviting the chancellor to Shrewsbury.
In one of the more unusual House of Commons interventions, the Shropshire Conservative raised the issue during a session for questions to the minister.
He suggested the pair could go on pub crawl and see first-hand the effect business rates are having on the town.
The committee will examine how business rates police has changed, alternatives to property-based taxes and how further changes could impact businesses.
MP Nicky Morgan, chairman of the Treasury Committee, said it has been estimated that 10,000 shops will close this year unless action is taken.
He added: “Business rates can represent a substantial financial burden on the high street. The Treasury Committee is therefore launching an inquiry into the effectiveness and impact of these rates on business.
“We’ll examine how the current system is working and consider whether an alternative system, for example a land-value based tax, may help level the playing field between retailers.
“At the end of the inquiry, we’ll make a series of recommendations to Government on the fairness and effectiveness of the current system, and how it could be improved.”
