Local Government Finance Bill

James Morris Excerpts

Tuesday 10th January 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

Britain has one of the most centralised systems of local government finance in the developed world, which is why I support this Bill in beginning the process of removing that centrally controlled straitjacket. It is also why I welcome the provisions for the relocalisation of the business rate as a significant step forward in achieving the devolution of financial power. I have been a strong advocate for relocalisation for a long time, in my capacity as chief executive of Localis, the local government think tank, because I believe that relocalisation of the business rate will provide a significant incentive for local authorities to drive business growth. It will also, as the Secretary of State said, significantly change the culture, so that local government will no longer be looking upwards to the centre for grant funding but will be looking for locally driven solutions to issues of economic development.

I recognise, as others have done, the important contribution that tax increment finance can also play in providing a new and innovative mechanism of funding for local authorities, and I very much welcome the Bill’s provisions on TIFs. Dudley metropolitan borough council, one of the local authorities in my constituency, is already looking at projects that it might be able to convert into TIF-funded infrastructure development, which is critical. I welcome both those central provisions.

I also particularly welcome the opportunity for enterprise zones to retain a proportion of the uplift in business growth and in business rates, because that is going to be a good way of incentivising and developing local enterprise partnerships and offering them a long-term income stream. I very much welcome the Bill as a significant step forward and major milestone in the Government’s approach to localism. It is a very important first step in moving towards a genuine devolution of financial power, so I very much support the provisions and welcome the Bill strongly.