Local Audit and Accountability Bill [Lords]

Debate between Huw Irranca-Davies and Brandon Lewis

Tuesday 17th December 2013 Commons Chamber

[Brandon Lewis]

I will come on to that very point in a few seconds.

I have to say that there is no basis for suggesting that these levies would result in authorities being forced to hold referendums. Given the relatively small increases involved, I would urge those authorities to freeze their council tax instead and take advantage of the grants we are making available to support them in doing so, thus holding down council tax for hard-working people.

Let me gently suggest to Labour Members that this is an area where the facts do not support the claims being made. It is right for the Opposition to test and challenge the statements of the Government of the day, but where there is shown to be no basis for criticism, we should move on and focus our attention elsewhere. In this case, we are proceeding over ground already debated several times here and in the other place, and the figures involved are not disputed by the Opposition or the authorities themselves. However, in the same manner as for any other authority, if Leeds, Bradford or any other council wishes to make representations about how the proposed referendum principles will apply to their particular circumstances, the Secretary of State would take them into account when asking the House to approve the final principles in 2014.

[Huw Irranca-Davies]

I am listening carefully to the Minister and I am genuinely probing because this is a matter of concern. Can he give a categorical assurance that where emergency funding is needed for an area, as advised by an IDB, it would trigger the referendum and would not delay the essential work being done? Can he give that categorical assurance and, if so, how?

[Brandon Lewis]

The hon. Gentleman makes a cogent point. My constituency of Great Yarmouth has been heavily affected by the east coast weather, with 9,000 evacuations and some homes lost in Hemsby, where the community is working phenomenally well together. What happens in the event of floods or other major disruptive events is that the Government look to support authorities facing major unexpected problems in the usual ways—through the building scheme, for example, or other appropriate bespoke approaches. Inclusion of levies in council tax legislation will have no effect on those procedures.

[Huw Irranca-Davies]

rose—

[Brandon Lewis]

I want to make some progress, but I am happy to talk to the hon. Gentleman further about Bellwin.

The other claim made in Committee and on Second Reading was that the Government were reneging on their agreements with authorities and that they gave their approval for large council tax increases as part of the Leeds city deal. That is not correct. The Leeds city deal was not agreed on the basis that it meant large council tax increases for local people or on the basis of denying them their say if Leeds or other authorities wished further to increase council tax—for instance, to increase investment and go beyond what is set out in the deal itself. That could happen only so long as local taxpayers, who will have to bear the burden, are willing to accept it. It is a matter for them. With those reassurances, I hope that the hon. Member for Corby will not press his amendment to the vote. If he does, I encourage Members to resist it.

Amendment 6 agreed to.

Amendments made: 7, page 30, line 37, after ‘may’, insert ‘, in particular,’.

Amendment 8, page 31, line 2, at end insert—

‘(17) Subsections (18) to (20) apply (and subsections (14) to (16) do not apply) if this section comes into force on a day appointed by the Secretary of State by order under section 49(2A).

(18) Section 52ZC of the Local Government Finance Act 1992 applies with the following modifications to the determination of a set of principles for the financial year beginning with 1 April 2015.

(19) The Secretary of State may, in particular, determine categories of authority for that financial year—

(a) on the basis of whether an authority’s relevant basic amount of council tax for the financial year beginning with 1 April 2013 would have been excessive if that amount for that year and for the immediately preceding financial year had been determined under section 52ZX of the Local Government Finance Act 1992 as amended by this section,

(b) on the basis of whether an authority’s relevant basic amount of council tax for the financial year beginning with 1 April 2014 would have been excessive if that amount for that year and for the immediately preceding financial year had been determined under that section as so amended, or

(c) on the basis set out in paragraph (a) and on the basis set out in paragraph (b).

(20) In subsection (3)(b) of section 52ZC the reference to an authority’s relevant basic amount of council tax for the financial year immediately preceding the year under consideration is to the amount that would have been calculated by the authority for that year under section 52ZX of the Local Government Finance Act 1992 if the amendments made to it by this section had been in force for that year.’.—(Brandon Lewis.)

Amendment proposed: 18, page 31, line 2, at end insert—

‘(17) The Secretary of State may, by Order, exempt from the calculation of an authority’s basic amount of council tax any levies agreed as part of a City Deal signed prior to this Act receiving Royal Assent.’.—(Andy Sawford.)

Question put, That the amendment be made.

Business Rates

Debate between Huw Irranca-Davies and Brandon Lewis

Wednesday 4th December 2013 Commons Chamber

[Brandon Lewis]

I am sure that people in Wales looked at the powers we gave local authorities here and thought that it is something they want to do in Wales. I say again that we are talking about something that local authorities already, under this Government, have the power to do.

This Government absolutely recognise that the wrecked economy we inherited means that businesses are facing challenging times. It has been our job, where possible, to ease pressure on businesses of all sizes, and to use their skills and expertise to drive our recovery and ensure an economy that is ripe for growth. Some 1 million private sector jobs have been created and the deficit is down by a third. Those are not just happy coincidences; they are achievements of this Government’s economic plan.

[Huw Irranca-Davies]

Would the hon. Gentleman care to pass judgment on whether an increase in corporation tax, particularly for multinationals, from 20%, where the Government are taking it, to 21% would make us globally uncompetitive? My reading is that a 21% rate would put us very much in the top league of the internationally competitive on corporation tax rates.

[Brandon Lewis]

Again, I simply do not agree with the hon. Gentleman that putting up taxes on businesses is a good thing for business—it simply is not.