Business Rates

Debate between Toby Perkins and Clive Betts

Wednesday 4th December 2013 Commons Chamber

[Toby Perkins]

It is interesting the hon. Gentleman says that, because the point is that our business rate proposal was announced at the same time as we said how it would be paid for. It is the principle of ensuring that we do not make commitments unless it is clear how we will pay for it—in this case, the corporation tax cut is not being taken forward, and that will pay for the business rates. The Chancellor has just announced that he will not increase business rates, but I would be interested to hear from Government Members whether he will make it clear how that will be paid for. We have had numerous policies so far from this Government that seem to be just sticking it on the deficit.

[Mr Clive Betts (Sheffield South East) (Lab)]

My hon. Friend has made an important point because as well as small businesses, local authorities are under real pressure. Can he assure the House that his proposals will not reduce by one penny the money going to local councils?

[Toby Perkins]

I absolutely give my hon. Friend that assurance. It is entirely costed and there will need to be a reworking of the Budget to ensure that local authorities do not miss out. The other important point is that, as my hon. Friend will be aware, the Government amendment refers to the fact that local authorities can reduce business rates if they want. The idea that we can give local authorities huge cuts and say, “Well, if you want to reduce business rates, you can”, bears no relationship to the reality of local authority finances in many areas.

Localism Bill

Debate between Toby Perkins and Clive Betts

Monday 17th January 2011 Commons Chamber

[Mr Betts]

There was a problem with the initial design of the board, but it was subsequently reformed and now works an awful lot better. My concern is that if a local authority chooses not to have one, there will be nothing between the action of pulling a local councillor up and questioning their actions in some way and taking criminal action against them for failing to deal properly with an issue in relation to which they have a registered interest. There could be a real problem there with a void in the system.

I have other real concerns. The Government are embarking on a fundamental change to the planning system in this country, which Government Members cheered because that is what they believe in. With regard to the abolition of the regional spatial strategy and the development of neighbourhood plans, my concern is that change of this kind brings uncertainty and, to an extent, a lack of clarity, and that it could bring delays and, potentially, unintended consequences.

What will happen ultimately? The Government say that their policy is to build more homes than we were before the recession. They have obligations on renewable energy and ensuring that wind farms are developed to meet them, but what will happen if the sum total of all those local decisions is that fewer homes are built and not enough wind turbines are built to meet our renewables obligations? What is their fall-back position? Is it at that point that the Secretary of State will intervene, or is it that they will accept the sum total of local will across the country and fall down on their national house-building targets and their renewables obligations? What is the Government’s position? I have not heard a coherent explanation of it.

[Toby Perkins]

It was a tremendous privilege to be a member of the Select Committee alongside my hon. Friend for a short time. During one of its meetings that I attended, a number of witnesses expressed different views on the strength or otherwise of regional spatial strategies, but every one of them, to a man, agreed that the proposals being produced by this Government would lead to fewer houses being built, not more.

[Mr Betts]

Ultimately, the test will be whether the policy works. My question is this: if the policy does not work, what is the Government’s fall-back position? The Bill includes a duty on local authorities to co-operate on a range of issues, and it is important that they do so, because many of those decisions will have an impact beyond the boundaries of an individual authority. What will happen if local authorities do not co-operate? The Bill is vague about what will happen in that case.

I have mentioned that local authorities stand at the heart of localism. I believe in elective, representative democracy, so I do not understand why it is necessary for the Bill to spell out what the Secretary of State thinks is a proper increase in council tax and for there to be the power to have a referendum in such cases. Rather than a referendum on whether local authorities should cut services, there can be only a one-way referendum if a Secretary of State thinks that a council tax increase might be excessive, as defined by him. Why can we not just leave it up to elected local representatives to make such decisions? I continually refused to vote for the previous Government’s proposals on capping council tax because I did not think that they were right either.