Local Government Funding: Rural Areas

Ian Liddell-Grainger Excerpts

Monday 11th January 2016 Commons Chamber

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

Let me give a practical answer. My area includes Hinkley Point C nuclear power station, and wants to take a view five years into the future on business rates retention. At the moment, however, we cannot do that. We do not know what we are going to get. My hon. Friend is absolutely right about the damping down, because we are not capable at the moment of doing the forward projections in the Sedgemoor area. Does he agree?

[Graham Stuart]

I do. As the system comes in, there will be equalisation, and because of the different dynamics at work and despite the righteous principle—on this side of the House—in believing people should be incentivised to do the right thing and then keep the money, there will almost inevitably be a revisiting. If it turns out that someone’s huge shopping centre is going to be closed, the idea of them being left with no money is preposterous; similarly, if a huge bounty comes someone’s way, it is pretty likely that the Government will do what Governments have always done and raid it.