Local Government Finance

Mary Glindon Excerpts

Monday 18th July 2011 Commons Chamber

[Mr Pickles]

My hon. Friend makes a reasonable point. He will recall that we have introduced a simplified system for small businesses, to ensure that in the long term they will not have to fill in forms continuously in order to get the necessary rebate. Another important difference is that, unlike what was promised in the Labour manifesto, we are committed to keeping the formula. We are not going to increase the level of taxation, because to do so would have a disastrous effect for firms across the country and for the small firms in my hon. Friend’s constituency.

[Mrs Mary Glindon (North Tyneside) (Lab)]

Business rates from retail and commercial developments are at least five times higher than those from manufacturing in the north-east, but manufacturing is worth £7.5 billion to our economy. Is there a danger that manufacturing could lose out as retail and commercial developments are favoured as a better business rate bet?

[Mr Pickles]

I have obtained the briefing from the Association of North East Councils that the hon. Lady has just cited. It takes no account whatever of the fact that there is a tariff and a top-up. Opposition Members seem to think that we are dealing with some kind of Monopoly board on which local authorities can decide between retail and other developments. The truth is that the market will decide these things. Where the local authorities fit in is by not getting in the way of the market but working with it and deciding to go for growth. Opposition Members cannot honestly believe that local authorities can just sit there and say, “We’ll have a supermarket on every corner.” They cannot seriously believe that that is what the real world is like. Our proposals will remove a lot of the obstacles to growth.