Local Government Finance

Debate between Robert Neill and Sajid Javid

Wednesday 22nd February 2017 Commons Chamber

[Sajid Javid]

There has been a reset for Lancashire, so it should not lose anything. If the hon. Gentleman wants to provide me with any further information that he thinks we may not be aware of, I will be happy to take a look at it.

The authorities that I have just mentioned will be able to keep more of the growth in their business rates income with no impact on the rest of local government. We plan to undertake further pilots in 2018-19 in areas without the devolution deal, including two-tier council areas.

[Robert Neill (Bromley and Chislehurst) (Con)]

I very much welcome the roll-out of these pilots right across the country; it is entirely the right approach to take. The Secretary of State’s immediate predecessor came to Bromley to meet the leader and chief executive of our council when they expressed an interest in Bromley becoming a pilot. Will he take it from me that that offer and that interest still stands, and perhaps he might like to come to Bromley to discuss it with us?

[Sajid Javid]

I know that my hon. Friend speaks with a great deal of experience when it comes to matters of local government. I am more than happy to meet the leader of Bromley Council, and I hope that my hon. Friend will join me in such a meeting.

We plan to undertake further pilots for the two-tier authorities, and I welcome applications from any council waiting to take part in this second trial. The nationwide roll-out of 100% business rates retention will take place across England in 2019-20. Earlier this month, my Department published a consultation seeking views on exactly how the system should look.

[Sajid Javid]

Well, there is not much to work out. That ridiculous claim was demolished on the day that it was made.

[Robert Neill]

If the Secretary of State looks at page 34 of the local government finance report, he will see the Surrey-Croydon business rates pool set out in the statement.

[Sajid Javid]

I thank my hon. Friend for that.

--- Later in debate ---

[Sajid Javid]

I will come to the point made by the Chair of the Communities and Local Government Committee in a moment, but first I will give way to my hon. Friend the Member for Bromley and Chislehurst (Robert Neill).

[Robert Neill]

I hope that the Secretary of State will not think me discourteous if I disappear to chair my Select Committee in a moment. I welcome his statement and the tone in which it was made. Many of us have raised concerns about the issues that he touches on, and particularly about the fact that land values are high in areas such as mine—but that is no consolation to the independent trader on the high street. Will he undertake to meet me and other London and south-east Conservative MPs who have done some detailed work on this, to see how we can best find a constructive way forward?

[Sajid Javid]

My hon. Friend makes an important point about the challenges that businesses, particularly those on the high street, will face in areas such as Bromley. I would be more than happy to meet the leader of his council and other local representatives to learn more about those challenges.

Property-based business taxes have been around in one form or another for many decades—centuries, even. Nobody would argue that the current system is perfect, and it is right to ask whether the time has come for some kind of reform. The Treasury’s 2015 consultation showed little appetite for replacing the whole business rate system. It remains a vital part of the local government finance settlement, and its importance will only increase with the introduction of business rate retention. However, with underlying concerns about globalisation, international tax structures and the struggle between the high street and the virtual world, there is clearly room for improvement. We will look closely at all possible steps to make the system fairer and more sustainable in the short and long term.

Neighbourhood Planning Bill

Debate between Robert Neill and Sajid Javid

2nd reading: House of Commons & Money resolution: House of Commons
Monday 10th October 2016 Commons Chamber

[Sajid Javid]

The hon. Gentleman will know that once a neighbourhood plan is adopted, it becomes statutory and is taken into account when planning decisions are made. It is not a question of a local authority overruling a neighbourhood plan; once it is adopted, it is part of the local plan, so they are part of the same package, when it comes to making those decisions. Local authorities do not have the right to overrule a plan once it has been adopted.

Local and neighbourhood plans are vital tools for delivering new planning permissions. If we are to tackle the housing deficit, it is crucial that shovels hit the ground as soon as possible once permission has been granted for a development. There are a number of reasons why that does not always happen. One is because too many planning authorities impose too many pre-commencement conditions that unreasonably hold up the start of construction.

Of course, conditions can play a vital role. They ensure that important issues such as flood mitigation and archaeological investigation are undertaken at the right time. That is not going to change, but pre-commencement conditions should not be allowed to become unreasonable barriers to building. Not only do they delay the delivery of much-needed houses, but they create cash-flow issues for builders—something that is particularly problematic for smaller builders and new entrants to the market. To tackle this, the Bill reflects best practice by stopping pre-commencement conditions being imposed without the written agreement of the applicant. It will also create a power to restrict the use of certain other types of planning conditions that do not meet the well-established policy tests in the national planning policy framework. We are currently seeking views on both measures in a consultation paper published by my Department last month.

[Robert Neill (Bromley and Chislehurst) (Con)]

I am grateful to the Secretary of State for taking a short lawyer’s intervention. When he is consulting on planning obligations, will he also consult on the option that was considered in the Housing and Planning Act 2016: the ability for local authorities to buy their own land with planning obligations, as the local planning authority? That would greatly speed up the redevelopment process in urban areas.

[Sajid Javid]

My hon. Friend speaks with great experience on this subject, and it is something that I will consider.

Devolution and Growth across Britain

Debate between Robert Neill and Sajid Javid

Wednesday 3rd June 2015 Commons Chamber

[Sajid Javid]

I welcome my right hon. Friend back to the House. She is absolutely right that having the right infrastructure is hugely important to maintaining growth and the fall in unemployment. In her constituency, I think she has seen a record fall of 67% in unemployment over the last five years. We intend to continue that, and I am sure that infrastructure will have a big role to play.

[Robert Neill (Bromley and Chislehurst) (Con)]

I, too, welcome my right hon. Friend to his post. Those of us who know his business background will be delighted by the appointment. Will he consider whether more can be done to encourage the use of tax increment financing for significant infrastructure projects? We have one in London, promoted by the Mayor, but there is scope for more, with a genuinely free market approach to infrastructure provision.

[Sajid Javid]

I welcome my hon. Friend back to the House, and he again makes a very good point. I will help him to promote that. It is part of some of the city deals, but I think we can benefit from it a lot more.

I was talking about our commitment to 2 million jobs and 3 million more apprenticeships during the lifetime of this Parliament. These are not mere targets; the dignity of a job and the security of a pay packet are the foundations of our individual freedoms—freedoms powered by economic growth, through British business. Equally, British voters have shown their unwillingness to forgive the party responsible for plunging us into a generation-defining crisis—a party that has defined itself by seeking to punish, demonise and destroy business—but this anti-business approach from the Opposition was not a shock. Ultimately, Labour does not understand business; it does not understand enterprise. It never has and it never will.

The task ahead now is to cement Britain’s position as the best place in Europe to start and grow a business. The enterprise Bill is resolutely, unashamedly pro-business. It builds on the clear achievements of the past five years, when we cut red tape and slashed the cost of doing business by £10 billion. We made audits simpler for small businesses, removed pointless hurdles for house builders and exempted thousands of businesses from needless health and safety inspections. As a result, we now have the lowest burden of regulation among G7 nations.