Local Government Finance Bill

Lord Sharma Excerpts

Tuesday 10th January 2012 Commons Chamber

[Mr Pickles]

Of course, in that process of revaluation, we would seek to adjust the multiplier so that it had a neutral effect on the amount. What we are talking about is ensuring that, between periods of revaluation, an authority that grows above the national average can actually bank that. However, some authorities will clearly get a disproportionately large increase, and we have a levy, through which we seek to take that sum away and to apply it to the safety net.

[Alok Sharma (Reading West) (Con)]

I welcome these reforms, which will incentivise local authorities and local government to encourage growth, but will the Secretary of State confirm that they will not allow some local authorities to raise business rates on already struggling businesses?

[Mr Pickles]

I am happy to confirm that fact to my hon. Friend, because he raises an important point about local businesses needing a degree of certainty. Of course, the Secretary of State—the person holding my position—will set the multiplier and the sum.

There is something strange about all the objections, some of which we have heard already, in that they betray a lack of faith in the people whom we represent. No one area has a monopoly on the formula for growth. Economic success is not a southern phenomenon.