Theresa May backs defiant Sajid Javid over business rates row
Video report by ITV News Political Correspondent Libby Wiener
Downing Street has insisted Theresa May has full confidence in Communities Secretary Sajid Javid, as a swathe of Tory MPs waded into a row over business rates.
Mr Javid and Treasury Chief Secretary David Gauke have been accused of misleading party colleagues over the impact of a business rate revaluation which will leave more than a quarter of companies facing higher bills.
In a private email to colleagues dated 18 February, the pair blasted "a relentless campaign of distortions and half-truths" and said 2017-18 "will see the biggest ever cut in business rates" thanks to the government's "unprecedented £6.7 billion package of rate relief".
The letter added: "From Cornwall to Northumberland, the average business rates bill will fall in every region of England apart from London."
But the letter has not stopped a number of Tory MPs lining up to voice their anger.
Former business minister Anna Soubry called for a fundamental rethink of the entire system, in which taxes are based on the rental value of a commercial property.
Her party colleague and Bath MP Ben Howlett criticised the government's "London-centric" approach, arguing that his city should be offered help similar to the capital, where firms with a rateable value of up to £28,000 have their rate rises capped to 5%, compared with £20,000 elsewhere.
Posting on his website, Mr Howlett said: "London is not the only part of the country where property prices have risen extortionately in recent years.
"Why should small businesses in Bath be penalised for their part in a thriving economy when their counterparts in London receive significant additional support through a different small business rateable value threshold?"
What did the letter from Sajid Javid and David Gauke say?
In a memo to party colleagues, Mr Javid and Mr Gauke attacked a series of "myths" and blamed "misinformation circulating in the news" for creating concern among business owners and lobby groups.
The letter revealed:
Of the 326 local billing authority areas in England, average rates will fall in 259;
The retail industry will benefit from a 6% reduction in rates;
Businesses in rural areas will see their bills fall by an average of 4.4%;
Small and medium-sized pubs will see rates decrease;
Villages with only one petrol station, pub, post office or general store "will generally receive 100% rate relief".
'Labour's financial crash'
The letter, however, was frank about the fate of businesses in London, many of which, it said, would experience rate rises due to the capital's booming economy since "Labour's financial crash".
"When a local economy is relatively stronger, the value of their property inevitably rises," said the letter.
It continued: "Around a quarter of businesses will experience a rise and, due to the rapid growth of London's economy since Labour's financial crash of 2007-08, the year last used for valuation, many of them will be in the capital."
'Full confidence in Sajid Javid'
Asked on Tuesday if the Prime Minister continued to have full confidence in Mr Javid, a Number 10 spokesman told a regular Westminster media briefing: "Yes."
It came after Chancellor Philip Hammond assured Conservative MPs that he is listening to their concerns about the revaluation.
But he stopped short of committing himself to action in next month's spring Budget to soften the blow on affected firms.
The government insists that almost three quarters (73%) of businesses will see their rates reduced or stay the same after revaluation, with some 600,000 firms paying no business rates at all.
Mr Hammond stressed that the revaluation, which was set in motion under David Cameron administration, was the subject of a consultation exercise in which business organisations were involved.
Shadow business secretary Rebecca Long-Bailey called on the Chancellor to commit to transitional relief for businesses facing "astronomical" increases.