Oral Answers to Questions

Douglas Carswell Excerpts

Monday 20th June 2011 Commons Chamber

[Mr Speaker]

We are obliged to the Secretary of State, I am sure.

[Mr Douglas Carswell (Clacton) (Con)]

19. What steps he is taking to increase the fiscal autonomy of local authorities.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill)]

The local resource review will enable local authorities to keep at least a proportion of the business rates that they raise. This will enable a number of local authorities to break free from dependency on central Government. The review will also bring forward proposals to free local authorities to raise tax increment financing to support infrastructure and related projects.

[Mr Carswell]

Does the Minister believe that we can achieve real localism without devolving revenue-raising powers from Whitehall to the town halls?

[Robert Neill]

The Government are anxious to ensure that local businesses are not subject to local increases in taxation which they cannot control, but on the other hand a real and powerful incentive is being created for local authorities to grow their tax base by attracting business to their area.