Local Government Finance Bill (First sitting)

Debate between Clive Efford and Kevin Foster

Tuesday 31st January 2017 Public Bill Committees

[Kevin Foster]

Q I have a second, quick question. What difference do you think the average council tax payer and council resident is going to notice if this Bill is passed?

Mr Jones: Once the system comes into full effect, the incentives that councils have will mean that many more areas will have a more business-friendly environment, where more businesses are nurtured and more jobs created. The positive knock-on effect is that councils that take to that and do the right thing will be able to grow their income to provide local services. Residents across our local authority areas want high-quality public services, and this will help to do that.

[Clive Efford]

Q How much of the local government grant comes from the business rate collected by the Government and redistributed to local authorities?

Mr Jones: All of the business rate, bar the £12.5 billion —or £12.8 billion, to be more exact—that has been mentioned, currently goes to local authorities, with the exception of the amount raised from the central list. That list relates to the business rate that comes from infrastructure, for example, and that money does not go directly to local government. The quantum of the funding is set out in the document.