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Fiscal Autonomy (Local Authorities)

Volume 530: debated on Monday 20 June 2011

The local resource review will enable local authorities to keep at least a proportion of the business rates that they raise. This will enable a number of local authorities to break free from dependency on central Government. The review will also bring forward proposals to free local authorities to raise tax increment financing to support infrastructure and related projects.

Does the Minister believe that we can achieve real localism without devolving revenue-raising powers from Whitehall to the town halls?

The Government are anxious to ensure that local businesses are not subject to local increases in taxation which they cannot control, but on the other hand a real and powerful incentive is being created for local authorities to grow their tax base by attracting business to their area.