Oral Answers to Questions

Steve Double Excerpts

Monday 16th January 2017 Commons Chamber

The Secretary of State was asked—

[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.

[Steve Double]

I welcome the decision that Cornwall will be a pilot area for the retention of business rates. However, business rates in Cornwall are low, particularly when compared with urban areas. Will the Secretary of State reassure the people of Cornwall that Cornwall Council will not lose out on any funding as a result of the changes?

[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.