Oral Answers to Questions

Nadhim Zahawi Excerpts

Monday 5th September 2011 Commons Chamber

[Esther McVey (Wirral West) (Con)]

6. What the timetable is for the implementation of local retention of business rates.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

7. What the timetable is for the implementation of local retention of business rates.

[The Secretary of State for Communities and Local Government (Mr Eric Pickles)]

The Government have published proposals to allow local retention of business rates and are seeking views by 24 October. The plans give councils a strong financial incentive to drive economic growth, as well as providing protections for places in need of additional support. Subject to the outcome of the consultation, we intend to introduce business rates retention by April 2013.

--- Later in debate ---

[Mr Pickles]

My hon. Friend makes a reasonable point, and I can assure her that part of the consultation makes it clear that local authorities will have the ability to bring business rates down, but not to put them up.

[Nadhim Zahawi]

In my constituency, the local enterprise partnership is moving swiftly to create business growth across both Warwickshire and Coventry. Can the Secretary of State explain which mechanisms will allow LEPs to receive funding from business rates where they, working with the local authority or alone, have been responsible for economic growth in the area?

[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.