Local Government Finance Settlement: Transition Grant

Lord Christopher Excerpts

Wednesday 16th March 2016 Lords Chamber

[Baroness Williams of Trafford]

My Lords, I apologise to my noble friend. This is about the transitional grant.

[Lord Christopher (Lab)]

In view of the reduction in business rates, should we assume that there will be a significant increase in council tax?

[Baroness Williams of Trafford]

My Lords, it is up to local areas to determine what they raise in council tax and how that relates to business rate retention. Clearly, there will be some sort of smoothing of that process because we would not want areas to be totally disbenefited by the new system. But generally, councils in the last few years have been extremely responsible in setting their council tax rates, and we expect them to go on being so.