Power of mayoral combined authorities to impose business rate supplements

Part of Local Government Finance Bill – in a Public Bill Committee at 10:00 am on 21 February 2017.

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Photo of Gareth Thomas Gareth Thomas Party Chair, Co-operative Party, Shadow Minister (Communities and Local Government) 10:00, 21 February 2017

I beg to move amendment 19, in clause 38, page 28, line 38, after “2009”, insert—

“(f) any other billing authority.”

This amendment would add any billing authority to the list of levying authorities with a power to impose business rate supplements.

I hope not to detain the Committee too long on this amendment, although I do have a series of questions for the Minister.

Amendment 19 seeks to put right the rather odd exclusion of non-mayoral combined authorities from the power to levy business rate supplements. It will be interesting to hear why Ministers think that the existence of a Mayor is the only thing that should be pivotal to whether an area should be allowed to raise money for investment in infrastructure. One would have thought that the principle of localism would allow local authority areas to come forward and decide whether they needed a Mayor, and that Ministers would respect the decisions of the people of England in that regard.

In the particular case of business rate supplements, we should remember that a ballot of non-domestic ratepayers is required. A series of checks and balances is therefore built in to the levying of business rate supplements already. Given that, it seems even more unfair that non-mayoral combined authorities should have not the power to levy business rate supplements, if they have identified with their business community a significant need to raise money for investment in infrastructure. That smacks of the nanny state—a mentality that “Whitehall knows best” and should be able to dictate what happens in Swindon, Cornwall, Totnes or Northamptonshire. We believe that the people of England should be trusted to make a decision in their particular areas about whether they have a Mayor. Denying them the chance to work with their business community to raise money for much-needed investment in infrastructure seems to be particularly unfair.