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Business Rates

Volume 450: debated on Thursday 12 October 2006

To ask the Secretary of State for Communities and Local Government what assessment she has made of the implications for small UK businesses of the proposal being considered by Sir Michael Lyons to allow local authorities to set the level of business rates. (91872)

Sir Michael Lyons is due to submit the report of his independent inquiry into local government funding, form and functions to my right hon. Friends the Secretary of State for Communities and Local Government and the Chancellor of the Exchequer in December 2006. We will consider his recommendations carefully once we have received his report.

To ask the Secretary of State for Communities and Local Government how much was collected by her Department in business rates within the City of Westminster in each of the last five financial years; and what level of grant was awarded by her Department to Westminster city council for the provision of vital local government services in each year. (92381)

The City of Westminster’s contribution to the national non-domestic rate pool between 2001-02 and 2005-06 is shown in the following table. Also shown is the level of Formula Grant given to the City of Westminster in the same period.

£ million

Contribution to national non-domestic rate pool

Formula Grant

2001-02

795

199

2002-03

838

205

2003-04

860

216

2004-05

885

224

2005-06

936

238

The contribution to national non-domestic rate pool data are taken from returns made by local authorities to the Department for Communities and Local Government on NNDR3 returns.

Formula Grant comprises Revenue Support Grant, National Non-Domestic Rates (NNDR) and principal Police Grant (not applicable here). The Formula Grant data for 2003-04, 2004-05 and 2005-06 are after the amending report.