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Business Rates Retention

Volume 632: debated on Monday 4 December 2017

14. What assessment he has made of the implications for local authorities outside London of full business rates revenue retention by London local authorities. (902705)

Local authorities in London have estimated that the business rate retention pilot announced in the Budget will benefit them by £240 million. There will be no impact from the pilot on other local authority areas.

Will the Minister explain how it can possibly be the case that business rates in London raise £7.5 billion and retention only gives £240 million? Surely this is swiping money from the rest of the country, which needs it in order to even up resources.

The £240 million is new money from business rates growth. Let me share with the hon. Lady the startling fact that 100% of the local authorities that will get the business rate localisation pilot applied for it. When she goes back up to her constituency, she might like to ask her own Labour-controlled council why it could not be bothered to do so.

Will the hon. Gentleman pass on the message very forcefully to the Secretary of State that many of us applaud what he said in relation to Donald Trump’s retweeting of certain messages? My difficult question is: why does he not get on with the job of ensuring that the regions of our country get a fair share of resources, and stop piling money into London and the south-east?

I noted that the Mayor of London, Sadiq Khan, said that this was the worst Budget for London in 10 years. What I know is that, at £1.8 billion, it was the best Budget for the north of England ever.