Local Government Finance

Henry Smith Excerpts

Monday 18th July 2011 Commons Chamber

[Mr Pickles]

God help us if the hon. Gentleman does not understand that. Local authorities work hard to bring new things into their areas and to ensure that there is a balance. The difference between this system and the existing system is that, at the moment, despite everything that the local authorities do, we take the money away from them and it goes back into a central pool. In future, they will keep that money, which will give them an incentive—[Interruption.] The hon. Gentleman clearly does not seem terribly familiar with the entrepreneurial system that exists. His counsel of despair is that we cannot do anything and should not do anything but continue to stand here with our hands out. That is not really a policy; it is a surrender.

[Henry Smith (Crawley) (Con)]

I very much welcome my right hon. Friend’s statement. Will he confirm that, contrary to the call from the Labour party, business rates will not be raised for small firms in my constituency or elsewhere in the country?

[Mr Pickles]

My hon. Friend makes a reasonable point. He will recall that we have introduced a simplified system for small businesses, to ensure that in the long term they will not have to fill in forms continuously in order to get the necessary rebate. Another important difference is that, unlike what was promised in the Labour manifesto, we are committed to keeping the formula. We are not going to increase the level of taxation, because to do so would have a disastrous effect for firms across the country and for the small firms in my hon. Friend’s constituency.