Oral Answers to Questions

Mims Davies Excerpts

Monday 21st March 2016 Commons Chamber

The Secretary of State was asked—

[Mims Davies (Eastleigh) (Con)]

1. What estimate he has made of the amount of revenue that councils will be able to collect through devolved business rates.

[Nusrat Ghani (Wealden) (Con)]

4. What estimate he has made of the amount of revenue that councils will be able to collect through devolved business rates.

[The Secretary of State for Communities and Local Government (Greg Clark)]

Councils currently retain just under £12 billion of the business rates that they collect. As a result of our reforms, we estimate that, by the end of this Parliament, councils will retain the full £26 billion raised from business rates.

[Mims Davies]

Local confidence is rock bottom in the budget-setting of Eastleigh Borough Council, which is showing a huge funding gap. Does the Minister agree that the new business rates powers will help councils to take control of their finances properly and help local business?

[Greg Clark]

I do indeed. I enjoyed meeting many of the councillors from my hon. Friend’s constituency recently and seeing the excellent work that is being done to attract businesses through the local enterprise partnership and investment in Eastleigh College. Business rates are buoyant in her area, and she will know that an extra two thirds of a million pounds is available this year because of that buoyancy in business rates, so the prospect of more business rates is clearly going to be of great help to her council.