(8 years, 11 months ago)
Commons ChamberAgain, I thank my hon. Friend for the role he has played in making sure that this issue is looked at properly. As he will know, the commitment we have made on business rates retention, which we want to start in the financial year 2019-20, means that there will be a requirement to have the proper baseline set for all local authorities before that system can be properly brought in. I hope that that gives him some comfort on the timing that is necessary given that the two things—the fair funding review and the business rates retention plan—are very much interlinked. There will be various staging posts on the way. As always, I am more than happy to sit down with him to take him through those and discuss this further.
Much of what my right hon. Friend is saying is music to my ears as well. Does he agree that this is exactly the right time to address the issue of fair funding, because if unfairness gets baked into the system with the retention of business rates, it will basically be there for ever? It is vital that we get this right now, before the retention of business rates goes ahead.
My hon. Friend is right. As we move to 100% business rates retention and the requirement for local authorities to be more self-sufficient, it is right that we have the correct baselines, and that necessitates a proper review of needs for all areas, including—of course—our most rural areas.
Councils have long campaigned for 100% business rate retention. Last week, we introduced the Local Government Finance Bill, which will establish the framework for the reform system. We will continue to work closely with local government during the passage of the legislation to shape the detail of the reforms.
I welcome the decision that Cornwall will be a pilot area for the retention of business rates. However, business rates in Cornwall are low, particularly when compared with urban areas. Will the Secretary of State reassure the people of Cornwall that Cornwall Council will not lose out on any funding as a result of the changes?
I am pleased that Cornwall will be one of the areas to pilot some elements of the new 100% business rate retention system. The pilot will help us to develop the system and make it work for all local authorities, including rural authorities. We have been clear in setting up the system that we will ensure redistribution between councils, so that areas do not lose out just because they collect less in local business rates.
There have been regular meetings with our colleagues in the Ministry of Defence and with the companies, including Sheffield Forgemasters, that specialise in some of the steel that is required for our defence purposes. The hon. Gentleman will be pleased to know that, for example, the new Queen Elizabeth aircraft carriers will use some 95,000 tonnes of British steel.
While words of support from Labour Members are always welcome, has the Secretary of State made an assessment of the impact that the climate change levy introduced by Gordon Brown has had on the steel industry? What steps are the Government taking to support other energy-intensive industries such as the china clay industry that is so important to my constituency?
That is an important point: energy costs are important for all energy-intensives, including steel, ceramics and many other industries. We have already introduced compensation for the green policy costs to industry, and that already saves the steel industry, including Tata Steel, £80 million, and we are now moving further towards an exemption, which could save another £400 million by the end of this Parliament.
(10 years, 2 months ago)
Commons ChamberI agree with the hon. Lady on the issue of productivity and the need to boost skills. There will be area reviews, so I cannot make a promise about any particular institution. However, as the Minister for Skills has said, there will be an increase in FE funding of more than 35% in real terms over the lifetime of the Parliament. In the hon. Lady’s constituency, there has been a 75% increase in apprenticeship starts during the past five years, which I am sure she welcomes.
T3. The Eden Project in my constituency has run a successful apprenticeship in horticulture for the past year. Horticulturalists will become more and more important in meeting our increasing demand for food. What support can the Minister provide to promote horticulture as a worthwhile career for young people?