Business Rates

Oral Answers to Questions — Communities and Local Government – in the House of Commons at 12:00 am on 18th July 2016.

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Photo of Jeff Smith Jeff Smith Opposition Whip (Commons) 12:00 am, 18th July 2016

What steps the Government plan to take to ensure that the devolution of business rates does not adversely affect deprived areas.

Photo of Sajid Javid Sajid Javid The Secretary of State for Communities and Local Government

By the end of this Parliament, local government will retain 100% of taxes raised locally. There will be redistribution between councils, so that areas do not lose out on funding where they collect less in taxes.

Photo of Jeff Smith Jeff Smith Opposition Whip (Commons)

I agree with the Secretary of State that, as he said earlier, no council should lose out, so there will need to be some system of top-ups and tariffs. We also need to use the opportunity to incentivise areas to promote growth. How will the Government ensure that this does not become just an administrative exercise that leads to another complicated local government funding formula by another name?

Photo of Sajid Javid Sajid Javid The Secretary of State for Communities and Local Government

The hon. Gentleman’s constituency has already seen a 44% fall in the claimant count since 2010, and this is another way to try to boost local growth by having control over local taxes. He makes the important point that we should make sure that no council loses out, and that is why there will be this redistribution, but at the same time there will be more ways to promote local growth.