Barry Sheerman
Main Page: Barry Sheerman (Labour (Co-op) - Huddersfield)
Greg Clark
The answer to the first question is that compensation will be paid in the way that it always has been when we have reduced business rates: as a section 31 grant from Government to local authorities. That mechanism is tried and tested, as the hon. Gentleman knows, and it is the way these sums are always paid. He will also know that, when it comes to the full retention of business rates by 2020, the forecast, as I said, is that there is £26 billion of revenue, and councils retain £13 billion. Therefore, there are transfers that need to be made in, which will be taken into account by the end of the process. However, I know that his Select Committee, and local government generally, will want to help to advise on that.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Did the Secretary of State see comments in the Sunday papers saying that poorer areas of the country will again be doubly disadvantaged? What is the point of mucking around with local government finance if we continue to rob local government of its powers? Taking away responsibility for education must be one of the most shocking and negative things that I have heard in any Budget.
Greg Clark
For generations, local government has argued that it should be financed from its local revenues. It has taken this Government, in devolving powers and finance, to say that every penny of business rates raised by local government should be kept by local government. The hon. Gentleman talks about the devolution of powers, but he will know that many members of the Labour party in towns and cities across the country have welcomed the devolution of powers to local government under this Government, which is something that I am very proud of.