Wednesday, 29 June 2011

New government proposals on business rates to hit Haslingden & Hyndburn hard

Tory-led Government’s business rates plan could cost Hyndburn Council £9.4 million per year following plans announced by Nick Clegg.

In response to Nick Clegg's speech to the LGA Conference this morning, The Chartered Institute of Public Finance and Accountancy's Finance and General Estimates Statistics 2010-11have released damning statistics that show the fat cats will get fatter whilst Hyndburn and the regions will lose £millions.

Meanwhile Westminster – home to the some of the World’s biggest businesses, shopping streets and tourist attractions – would get to keep the £1 billion it currently contributes to the national Business Rates pool, which is redistributed to other councils around the country.

If Hyndburn Council Council loses out on the funding it gets from the national business rates pool, it would mean Hyndburn Council keeping it's own business rates of £10.2million instead of paying into the national pool and receiving  £19.6million.

What Nick Clegg needs to recognise is that we all pay for 'London' services. Nearly every organisation has a head office in London paying large salaries and large business rates to London and the South. This fuels the economy of the south east but it is people in Hyndburn who are directly paying those London busines rates.

The Liberals once again are the human shield for the Tories dirty work. David Cameron and Co must be laughing all the way to the next general election ballot boxes.

We’ve already seen deep cuts to our Council’s funding from the Tory led Government. Unless they spell out clearly how they will ensure we don’t lose out, we could be in line for yet another devastating blow to local services.

This announcement demonstrates that Haslingden and Hyndburn are of no interest to this Tory-led government.

Caroline Flint, Labour's Shadow Secretary of State for Communities and Local Government, said

"Nick Clegg must explain how he intends to localise business rates without pulling the rug from beneath the finances of councils in Britain's most deprived areas. If business rates were completely localised Westminster Council would gain over a billion, the City of London would gain half a billion Pounds, but many other areas would lose hundreds of millions in vital funding.

Already those councils that serve Britain's most disadvantaged communities have suffered the worst of the Tory-led Government's cuts. We have seen already how little promises mean to Nick Clegg. Until he sets out in detail exactly how he will ensure that councils won't lose out under the localisation of business rates, we can't take his word seriously."

Notes

According to The Chartered Institute of Public Finance and Accountancy's Finance and General Estimates Statistics 2010-11, Westminster contributed over £1 billion to the National Non-Domestic Rate account.

Local authorities where Business Rates collected are far lower benefit from this subsidy.

Net Non-Domestic Rates contributions from Westminster Council in 2010/11 are £1.097 billion

Net Non-Domestic Rates contributions from City of London Corporation in 2010/11 are £0.555 billion

Net Non-Domestic Rates receipts for xxx Council in 2010/11 are £xxx million