Local Government Finance

Annette Brooke Excerpts

Monday 18th July 2011 Commons Chamber

[Mr Pickles]

It would be horrible if businesses had to take the roofs off their factories in order to escape local authorities—as I believe the right hon. Gentleman will recall from his time in office. Sheffield does remarkably well out of this process. Over the past five years it has had above-average growth in its rate base, and I see no reason why it should not benefit from this. Basically, this is about ensuring that local authorities can benefit from growth in their business rates and can be encouraged to work with business. Frankly, it is no good being in favour of repatriating business rates unless we are also prepared to put in place something that is fair and equitable and will look after the vulnerable. I am very sorry that the two hon. Members from Sheffield do not seem to realise that.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

I welcome the principles behind this proposal—equalisation and incentivisation—but I am concerned about year two. The percentages for how the levy operates and how it is redistributed will be critical. What forms of consultation will the Secretary of State engage in, and what scrutiny of the proposals does he envisage?

[Mr Pickles]

My hon. Friend raises an important point. She will find waiting for her in the Vote Office a consultation document dealing exactly and precisely with the questions that she raises. It is important to understand that there will be no cliff edge in year two. We need to get away from the idea of dependency and the continuous search for the bottom—whereby local authorities try to outdo each other in saying how bad things are. We should be able to celebrate the places we live in, show things off with pride and give local communities the benefits of growth.