Oral Answers to Questions
Debate between Robert Neill and John Denham
Robert Neill
The most valuable assistance that we have given is ensuring an extension of the business rate relief. Moreover, we are assisting small businesses in particular and we have increased the threshold for empty property relief this year to £18,000—all of which the previous Government signally failed to do.
Mr John Denham (Southampton, Itchen) (Lab)
The Government often tell us that hard choices must be made in these difficult economic times. May I ask the Minister about port rates? The Labour Government recognised the difficult position of ports businesses that were faced with backdated rates by giving them eight years to pay. In those circumstances, how does the Minister justify spending hundreds of millions of pounds entirely wiping out the legal rates of those businesses, when other public services for which he is responsible are suffering? Is not that a pretty disgraceful piece of pork-barrelling, given that the measure is aimed at what were Tory target seats in the last general election? People up and down the country who face their services being cut will ask why that is a priority in these difficult times.
Robert Neill
I think it is a better use of money than £2 million for the furniture in Eland House, if I might say so. With respect, the right hon. Gentleman neglects the fact that his Government’s policy was roundly condemned by the cross-party Select Committee on Communities and Local Government as being wholly inadequate, and condemned by a number of his hon. Friends who represented port constituencies.
The right hon. Gentleman’s policy neglected to reflect the reality that a discount for eight years did not remove the book liability that fell on ports businesses. That drove a number of them into balance-sheet insolvency, which in turn created cash-flow difficulties with their banks and actually put some out of business. The Government are keeping jobs in port constituencies and communities, and I am very proud that we are doing so.
Oral Answers to Questions
Debate between Robert Neill and John Denham
Robert Neill
We are fortunate in having able and experienced civil servants at our Department, and we certainly want to listen to their advice. It is worth remembering that that direction not only ignored value-for-money considerations, but contradicted stances taken by the previous Government. We will seek value for money, and we will also seek to be consistent.
Mr John Denham (Southampton, Itchen) (Lab)
I welcome the hon. Gentleman to his post. Can we debate Exeter and Norwich when the Local Government Bill comes to this House, although as these somewhat arrogant, high-handed and incompetent new Ministers have already lost a vote on it in the Lords before it even reached its Second Reading, we may never see it?
Does the Minister not understand that public investment through regional development agencies in towns such as Blackpool has been vital for business and jobs and should be in the future? Securing Blackpool tower and the Winter gardens for Blackpool and its millions of visitors was the right thing to do. What the House, the people of Blackpool and its Conservative council want to hear today is a promise from the Minister that he will not allow his colleagues in the coalition to undo the crucial deal that has been done. Will he give that assurance?
Robert Neill
The fact is that the deal is done; the money has been spent. We are not seeking to undo it.
Robert Neill
I am grateful to my hon. Friend for the question. I know that, very swiftly after his election to this House, he was in contact on behalf of his constituents regarding a number of related issues. I assure him that, yes, the Government are committed to a review of the local government finance formula and that, within its scope, we will of course consider the points that he and others have made.
Mr John Denham (Southampton, Itchen) (Lab)
The Conservative party was elected on a promise to slash public services this year—the Liberal Democrats must answer for themselves—and huge cuts affecting local government have been announced today. May I ask the Minister why what he has proposed today is so unfair? Why is it that the impoverished northern mill towns, the ex-coalfields and the struggling seaside towns will take the largest share of the cuts? Why is it that the big cities—Manchester, Liverpool, Leeds and Birmingham—will take the largest cuts? Why is impoverished Newham to have a cut of £4.6 million and wealthy Richmond one of just £900,000?
Robert Neill
I have no intention of taking lectures from a member of a Cabinet that left this country record levels of debt. Unless there are cuts, by 2014 we will be paying more in interest on the debt than we will in council tax, business rates, inheritance tax and stamp duty combined.