Local Government Finance Bill (Fourth sitting)

Steve Double Excerpts

Thursday 2nd February 2017 Public Bill Committees

[Justin Tomlinson]

I would not dare to incur the wrath of the Chair of the Committee, Mr Gapes, who has made it clear that this is not the time to discuss coastal matters, although I am sure that by the end of the 10 sittings we would all welcome a day trip to some of those coastal constituencies to see them at first hand.

I felt I had addressed the point about landlocked areas. Although some areas will find it easier to attract additional large-scale developments, such as the warehouses I mentioned, this is also about maintaining and protecting industries that are already there. That may be a case of lobbying national legislators not to make changes, in order to protect them. It is also about expanding microbusinesses to tip them into a size at which they have to pay business rates, having grown sufficiently and increased their headcount. Not every element of additional revenue will be raised purely by big expansion; it will also be done by speeding up organic growth that delivers income and jobs.

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

I represent a coastal area; in fact, mine is one of only three constituencies that have two separate coasts. We see the coast and the sea as assets, not barriers to economic growth. They can drive economic growth through fishing, tourism and many other sectors.

[Justin Tomlinson]

That is exactly the enthusiasm and innovation that we need to unleash across local authorities. I have every faith that our elected local authority leaders will seize the opportunity with exactly the same enthusiasm as my hon. Friend, taking advantage of it to deliver extra income and jobs.

--- Later in debate ---

[Mr Thomas]

I am grateful as ever for your advice, Mr Gapes. The other concern that was touched on, but not answered, by both the Minister and the hon. Member for North Swindon was the concern about Heathrow. The extra business rates growth that will surely come in the wake of a third runway at Heathrow—their treasurers, if not their local residents, will surely already be beginning to count up and look forward to all the extra revenue—will probably be far more significant in terms of promoting economic growth in the areas surrounding that third runway than anything that local councils might do.

[Steve Double]

Does the hon. Gentleman not recognise that expanding Heathrow is about growing not the economy around the airport but the economy of our nation? Cornwall expects to benefit in economic growth from the expansion of Heathrow because of the additional links that it will create with businesses in Cornwall.

[Mr Thomas]

With respect to the hon. Gentleman, that is precisely my point. In terms of business rates, the authorities that will benefit most from a third runway at Heathrow will be the local authorities in the immediate surrounding area. Without effective redistribution, there might be some additional business rates from businesses operating in Cornwall that are perhaps attracted to Britain as a result of a third runway, but primarily the main authorities that will benefit from the increase in business rates growth from that third runway will be the local authorities in the surrounding area.