To ask the Chancellor of the Exchequer whether he plans to remove the 70 per cent. scaling factor and ceiling in the Local Authority Business Growth Incentive Scheme. (126740)

In the three years to 2007-08 local authorities will receive about £1 billion through LABGI as the Government have previously announced. The Government have abolished the ceiling in LABGI. Due to Judicial Reviews brought by Corby and Slough authorities, this year the Government have retained the 70 per cent. scaling factor for payments to protect the important incentive this scheme creates for authorities both in this year and next year.