Jo Cox
Main Page: Jo Cox (Labour - Batley and Spen)Department Debates - View all Jo Cox's debates with the HM Treasury
(8 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Speaker
Order. The hon. Gentleman is a very illustrious fellow and a distinguished philosopher, but for the purposes of this question he is on the wrong side of the Pennines.
Jo Cox (Batley and Spen) (Lab)
3. What steps his Department is taking to enable councils to retain receipts from business rates.
The Financial Secretary to the Treasury (Mr David Gauke)
The Government have announced a radical reshaping of the state. By the end of the Parliament, local government will retain 100% of business rates to fund local services. The Government will shortly begin consultation on those reforms.
Jo Cox
My local authority, Kirklees, estimates that it will lose in excess of £30 million a year as a result of this policy and the changes to the local government grant. By comparison, Westminster Council’s income will increase tenfold. When will the Government provide clarity for councils such as mine on the redistributive element that will mean it will be able to plug that very significant shortfall in funding?
Mr Gauke
The devolution of business rates will retain the system of top-ups and tariffs that currently exist, so there will be no immediate loss to any local authority as a consequence of devolution. The point is that it devolves power to local authorities so that they have stronger incentives to boost growth. Local authorities that grasp that opportunity will see their business rates revenue increase.