Oral Answers to Questions

Jim McMahon Excerpts

Monday 3rd March 2025 Commons Chamber

[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

6. What discussions she has had with the Chancellor of the Exchequer on levels of non-domestic rates for pubs.

[The Minister for Local Government and English Devolution (Jim McMahon)]

Given the importance of business rates to both local government finance and local communities, and particularly to our high streets, our two Departments engage regularly on these matters. Pubs are eligible for the retail, hospitality and leisure relief scheme, and in the 2025-26 financial year pubs will benefit from a 40% relief on their bills, up to a cash cap of £110,000. For 2026-27, the Government intend to introduce a permanently lower rate for qualifying retail, hospitality and leisure businesses, including pubs. Those rates will be set by the Chancellor in the 2025 autumn statement.

[Charlie Dewhirst]

The highest pub in the Yorkshire wolds, the Wolds Inn at Huggate, is a great success story—Mr Speaker, I would be delighted to buy you a pint there the next time you find yourself on the right side of the Pennines—but, like many pubs in my constituency, it faces a crippling rise in non-domestic rates at a time when margins are very tight. Local pubs are not just businesses but much-loved community assets, so will the Minister reverse this tax grab and start supporting the great British local?

[Mr Speaker]

If I return as a missionary, I will bear that in mind.

[Jim McMahon]

Well, if it is intended to be a tax grab on pubs, we are not doing a very good job of it, because when the permanent scheme comes in, 99% of pubs that are under the £500,000 threshold will benefit from it. We absolutely recognise the importance of our community pubs in propping up the community and giving them places to meet, and to the economy and the good jobs that they provide.

[Chris Webb (Blackpool South) (Lab)]

The Armfield Club in my constituency is a fantastic local boozer that is run by, and was created by, Blackpool FC supporters. Venues such as the Armfield are the beating heart of our town, providing jobs and bringing local communities together. What steps will the Minister take to ensure a bright and sustainable future for clubs such as the Armfield?

[Jim McMahon]

I thank my hon. Friend for the work that he is doing to champion pubs in his constituency. Like all of us, he recognises just how important they are to the economy, and probably even more so to local communities. The Government can do a lot on business rates and on things like the community right to buy, which gives the community the right to step in when pubs might face closure, as part of the package.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

7. Whether she has had discussions with the Secretary of State for Scotland on the Arbroath town plan.

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[Kevin McKenna (Sittingbourne and Sheppey) (Lab)]

22. What steps her Department is taking to ensure areas with higher levels of deprivation receive adequate funding.

[The Minister for Local Government and English Devolution (Jim McMahon)]

We of course recognise the challenges that local authorities face, as demand increases for critical services. That is why the final settlement for 2025-26 made available over £69 billion for local government in England—a cash increase of 6.8% in core spending power on 2024-25. The most relatively deprived areas of England will receive 23% more per dwelling than the least deprived. Of course, spending decisions beyond this year are a matter for the upcoming spending review.

[Andrew George]

I am grateful to the Minister for that response. He will be aware that since the Conservatives took control of Cornwall council four years ago, they have transformed that authority from being financially sound to staring down the barrel of bankruptcy. Cornwall is a rural authority with urban levels of deprivation and a super-ageing population. What assurance can the Minister give that, through the funding formula and plans for local authorities, the Government will have due regard to the escalating costs for these local authorities, not least as a result of the national insurance contributions hike?

[Jim McMahon]

The hon. Gentleman and all Members of the House have our absolute commitment that when we revise the funding formula, we will ensure that it takes into account all the matters he mentions. The multi-year settlement is intended to give stability. We have to make sure that councils are on their feet at the end of that. We recognise entirely that deprivation is a driver of cost, but so is the cost of rural service delivery.

[Kevin McKenna]

The 48th most deprived locality in England and five of the 10 most deprived localities under Kent county council are in my constituency, yet the council struggles to understand the levels of deprivation and to adequately resource those localities. Can the Minister assure my constituents that devolution and reorganisation of local government in Kent will ensure that their needs are not ignored like this in the future?

[Jim McMahon]

I will not comment on individual councils, other than to say that this is why local government reorganisation is so important. In too many parts of England, the two-tier system is not working for local people. The two-tier premium means that a two-tier system is a more expensive way of delivering public services, and most members of the public have no idea which council is responsible for delivering which service. It is therefore right that we go through this reform. My hon. Friend is absolutely right to say that, in the end, things have to work for local people. All the matters that he covered are on our mind.

[Mr Speaker]

We come to the shadow Secretary of State.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Minister mentions local government reorganisation. On 5 February, the Deputy Prime Minister stated:

“We are postponing elections for one year, from May 2025 to May 2026”—[Official Report, 5 February 2025; Vol. 761, c. 767.]

but on 17 February, the Minister, in a written parliamentary question, said that

“new unitary…government will be established or go-live in 2027”

or 2028. Will the Minister confirm that these elections are not being postponed, and that they are, in fact, being cancelled for up to three years, meaning that councillors will serve terms of up to seven years? Will he also confirm that the Deputy Prime Minister may have unintentionally misled the House, and will he correct the record?

[Jim McMahon]

I can start by confirming that the Deputy Prime Minister did not mislead the House. The Opposition would do well not to muddy the waters. They know better than anybody what local government reorganisation means. Over the past few years, when they were in government, they postponed 17 sets of elections to allow reorganisation to take place. Although elections are being postponed in nine councils, 24 sets of elections will still take place this year. Let us not allow this to be whipped up into something that it is not.

We absolutely want to move at pace on reorganisation. We want to see proposals developed and presented early—the sooner the better—so that we can move to those shadow authorities, and so that local people can elect the new bodies that will deliver public services in their area and be accountable to them. To be clear, nobody will benefit—not the leaders of Conservative councils who have asked for postponement, nor members of the public—if we make the matter more confused than it needs to be.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

11. What steps she is taking to help ensure that local authority planning processes include fire safety assessments.

--- Later in debate ---

[The Minister for Local Government and English Devolution (Jim McMahon)]

That is exactly the reason that there was £3.7 billion of new money for adult social care in the Budget.

[Lloyd Hatton (South Dorset) (Lab)]

T5. Eden Portland is an exciting proposal for my community and, much like the Eden Project in Cornwall and Morecambe, it would be a hub for education and ecology. If delivered, it would boost investment and create well-paid jobs. I know that Ministers agree that this could be a real success story, so will they meet me and the team at Eden Portland, alongside colleagues from the Department for Culture, Media and Sport and the council, to discuss how we can deliver this exciting project?