Oral Answers to Questions

Michael Dugher Excerpts

Monday 5th September 2011 Commons Chamber

[Mr Pickles]

LEPs are a partnership between local authorities and business, and we will be encouraging, though we will not be prescribing, local authorities to pool the business rates. I know that a number of authorities around Greater Manchester, west Yorkshire and particularly London are actively considering pooling arrangements, which has the advantage that poorer areas can benefit from richer areas.

[Michael Dugher (Barnsley East) (Lab)]

Barnsley council has estimated that, had the arrangements been in place last year, it would have seen a cut of more than £40 million last year. Does the Secretary of State think it is fair that poorer areas such as Barnsley may face pressures in delivering vital local public services, whereas wealthier areas may see their business rates receipts go through the roof?

[Mr Pickles]

If business rates go through the roof, they will be caught by the “disproportionate” rule and those sums will be taken away and distributed to poorer areas. This was designed to help councils such as Barnsley to retain local growth. The figures that I have seen—we received some figures from Barnsley during the recent settlement—did not appear to be entirely accurate. I am happy to work with the hon. Gentleman to get the best possible deal for Barnsley.