Oral Answers to Questions

Steve Baker Excerpts

Monday 16th January 2017 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

1. What discussions he has had with local authorities on 100% business rate retention.

[Mr Steve Baker (Wycombe) (Con)]

4. What progress he has made on enabling local authorities to retain 100% of business rates.

[The Secretary of State for Communities and Local Government (Sajid Javid)]

Councils have long campaigned for 100% business rate retention. Last week, we introduced the Local Government Finance Bill, which will establish the framework for the reform system. We will continue to work closely with local government during the passage of the legislation to shape the detail of the reforms.

[Sajid Javid]

I am pleased that Cornwall will be one of the areas to pilot some elements of the new 100% business rate retention system. The pilot will help us to develop the system and make it work for all local authorities, including rural authorities. We have been clear in setting up the system that we will ensure redistribution between councils, so that areas do not lose out just because they collect less in local business rates.

[Mr Baker]

As you know, Mr Speaker, Buckinghamshire is the entrepreneurial heart of England. What assurances can the Secretary of State give the people of Wycombe that the needs-based review and the new business rate system will result in rebalanced service funding to reflect better economic growth in entrepreneurial areas such as ours?

[Sajid Javid]

I have visited the area with my hon. Friend several times, and he is right to call it entrepreneurial. Under the new business rates retention system, the redistribution of resources will continue, with baselines set through the fair funding review, so that all authorities are treated fairly.