Fire Services: Funding

Lord McKenzie of Luton Excerpts

Thursday 18th October 2012 Lords Chamber

[Baroness Hanham]

To answer the right reverend Prelate’s initial comments, of course we all recognise the very valuable service that the fire authorities carry out. I indicated earlier that I thought that the reduction in the number of fires is due to the expertise of the fire service, and it is to be greatly welcomed. I acknowledge that there are really bad exceptions to that and that the fire service then carries out a heroic and very valuable role. Local authorities, including fire and rescue authorities, were asked to respond to a consultation on how the baseline distribution should be set in 2013-14. I cannot pre-empt the future settlement position and, as I said earlier, there is not a settled view among firefighters on whether it should be based on a flat-rate cut or on other methods.

[Lord McKenzie of Luton]

The Minister will be aware, because we have debated it extensively, that we are about to embark on a new business rate retention scheme as well as a poll tax mark 2. Is not the reality of the business rate scheme that it will further entrench the inequalities and inadequacies in funding and could do so for up to seven years if the Government have their way on how the system will work?

[Baroness Hanham]

Yes, my Lords, the business rate retention scheme will have some effect on the fire and rescue authorities and their direct levers for growth. We have therefore proposed that single-purpose fire and rescue authorities should keep 2% of the local share of business rates.