Draft Non-Domestic Rating (Designated Area) Regulations 2021

Mike Amesbury Excerpts

Tuesday 2nd March 2021 General Committees

[Mike Amesbury (Weaver Vale) (Lab)]

It is a pleasure to serve under your chairmanship, Dame Angela, and I thank the Minister for his opening speech.

Next week marks one year since the World Health Organisation declared the covid-19 outbreak a pandemic. Two weeks after that marks a key moment, when the Prime Minister told us to stay at home, save lives and protect the NHS. Nearly 123,000 people are no longer with us, we have the worst economic downturn for 300 years and we are bottom of the league in the G7. Our hope—our shining light—has been the effort of the global scientific community and our NHS, public health and local volunteers in the vaccine roll-out, which we all want to succeed.

Another symbol of hope and light has been the valiant effort of our councils, which have stepped up throughout and continue to do so. I am sure the Minister agrees with that. Whether it has been taking in homeless people and families, ensuring that the vulnerable in the community receive food parcels or helping businesses to operate safely, we have seen good practice across the country, on top of the bread-and-butter services of social care, bin and waste collection, dealing with potholes and many more community-focused services. But councils have done that while having £15 billion of central funding grants cut from their budgets over the last decade.

The pandemic has had a catastrophic impact on local authority finances, with costs rising as income has fallen. The Secretary of State said, at the outset of the pandemic, that whatever funding was needed for councils to get through to the other side would be provided by Government. That has simply not been the case. Now residents and councils face the imposition of the Chancellor’s council tax bombshell of 5%—a figure built into the Government’s spending power for local councils in order to fund vital services, such as adult social care.

[The Chair]

Order. I am sure some background information is required, and I have given the hon. Member a bit of leeway, but will he now address the statutory instrument under consideration?

[Mike Amesbury]

I will move on.

Can the Minister explain why his own council, South Gloucestershire, which is led by the Conservatives, has felt compelled to set the maximum 4.99% council tax rise? The statutory instrument, which we will support, should not be used as a poor substitute for the Secretary of State’s broken promise on funding councils properly.

Councils have endured cuts over the past decade. Giving councils and combined authorities the means to capture 100% of business rates is in principle a good thing, and the ability to drive growth, which the Minister referred to, make gains from inward investment and maximise services are devolution in action. However, it will not have escaped the Minister’s attention that business rates as they stand are putting a straitjacket on growth in our local high streets and our broader economy. Businesses are already disappearing, and many will not reopen beyond the pandemic. Business rates must be rapidly reformed.

On that note, I shall conclude with some questions to the Minister. What vital progress has been made in the business rates review? When can we expect a response to the consultation? When can our councils and businesses expect action?