Marie Rimmer – 2016 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by Marie Rimmer on 2016-05-04.

To ask the Secretary of State for Communities and Local Government, what plans the Government has to compensate local authorities for the potential loss of business rate revenue arising from measures announced in Budget 2016 following full devolution of business rates and abolition of the revenue support grant.

Mr Marcus Jones

Our business rates tax cuts provide significant support to local businesses.

The Small Business Rate Relief measure announced at the Budget which starts in 2017-18 will mean 600,000 of the smallest businesses will not have to pay business rates. We will compensate local authorities, in full, for the loss of income as a result of this measure, in the same way as we have done for every other reduction to business rates we have made since the introduction of the business rates retention scheme.

We will move to 100% business rates retention by the end of the Parliament and will establish the scheme based on the amount of business rates available to authorities at the time, which will naturally take account of increases and reductions in business rates yields, including those resulting from measures announced at Budget 2016.