Local Government Finance Bill

George Hollingbery Excerpts

Tuesday 24th January 2012 Commons Chamber

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

I would like to make just a few comments, because I have listened intently to the discussion and found I am quite confused about the time periods that different people are talking about. I would like to ask the Minister what time of year the levy will be announced—that is critical—and also which year will be used. I have found it difficult to see whether we are dealing with historical data or doing it as we go along.

One big change will be that council finance officers are likely to be preparing monthly reports on the revenue from business rates, which will be different from what happened previously. I can see how that will focus the council’s mind on what is happening to its business rates, as well encouraging it proactively to talk with its local businesses to check stability and so on. I can see a lot of positives in that, but I need to know what the stocks and flows will be—it is really confusing—what the time periods will be and when the announcements will be made.

[George Hollingbery (Meon Valley) (Con)]

I wonder whether the hon. Lady knows the answer to a question that is confusing me—I apologise to the Committee for my ignorance about this matter. Once the baseline for a budget is set at the beginning of the year, is that set in concrete, so that it is paid via business rates through the Government and essentially becomes a central Government payment, or does it represent locally collected business rates that are not then given to the Government? In short, is that baseline interruptible or is the next year interruptible, when a council’s business rates have gone down?

[Annette Brooke]

I think my hon. Friend is hitting on the same issue that I have in mind—the respective time periods. It is important that we have clarity on that and I thought I had, but that was before I listened to the speeches this afternoon. We know that we are starting off firmly—councils know how much they are getting in the first settlement—but we need to know what will happen when the new system really clicks in.