Oral Answers to Questions

Stephen Hammond Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Gauke]

The devolution of business rates will retain the system of top-ups and tariffs that currently exist, so there will be no immediate loss to any local authority as a consequence of devolution. The point is that it devolves power to local authorities so that they have stronger incentives to boost growth. Local authorities that grasp that opportunity will see their business rates revenue increase.

[Stephen Hammond (Wimbledon) (Con)]

Does my hon. Friend agree that the point about last week’s announcement was that it was a defining moment for local authorities? Those local authorities that accept the principle of devolution of business rates can incentivise strong local business growth, and secure a local economy that is strong and that has jobs for its constituents. That is the key point.

[Mr Gauke]

My hon. Friend is absolutely right. He puts it very well. That is the key point: it is about ensuring that local authorities have the incentives to boost growth, and then local people can hold those local authorities to account.