Oral Answers to Questions
Debate between Nusrat Ghani and Greg Clark
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.
Nusrat Ghani
The Sussex chamber of commerce has declared its delight at the Chancellor’s announcement that small business rate relief will be doubled, but will the Secretary of State confirm that the Budget measures will ensure that rural areas such as Wealden and East Sussex, which are net receivers of business rates, are not worse off as a result of the change?
Greg Clark
My hon. Friend can have that reassurance. The package for small businesses in the Budget has been warmly received by small businesses right across the country. It amounts to a reduction of nearly £7 billion over four years, and every penny of that will be made up to local councils, so small businesses will benefit and councils will suffer no detriment.
Local Government Finance
Debate between Nusrat Ghani and Greg Clark
Greg Clark
I have some news that might cheer up the hon. Gentleman—it looks as though he may need it. By 2019-20, as a result of this settlement that, as I have said, recognises the pressure on authorities with social care responsibilities, the resources available to the hon. Gentleman’s council in Walsall will have increased by 1.5%.
Nusrat Ghani (Wealden) (Con)
Yesterday, together with my hon. Friend the Member for Lewes (Maria Caulfield), I met the leaders of East Sussex County Council to discuss their budget plans and priorities. They will welcome today’s announcement, especially the focus on longer-term funding and the recognition of the difficulties of rural councils. East Sussex has the highest number of 85-year-olds of any county in the country, and I believe that my Wealden constituency has the highest number in the country. Will the Secretary of State give my council further confirmation that the differing demands on local authorities in respect of adult social care will be taken into account?
Greg Clark
I know my hon. Friend’s constituency very well as she is my parliamentary neighbour. I understand that the pressures on adult social care for elderly people are significant. She will be pleased to know that by 2019-20 the resources available to East Sussex County Council will increase by 1%.