Mark Pawsey
Main Page: Mark Pawsey (Conservative - Rugby)Local Government Finance
Mark Pawsey Excerpts
Mr Pickles
The hon. Lady needs to try to remember what LABGI was actually like: it was an absolute disaster. Even the Lyons commission said that it was complex, unpredictable and not transparent. Let us remember that under Labour LABGI was chopped and changed. It was a three-year scheme that was stopped after one year, with the second year payments cancelled, and then it ran for two more years, following two consultations. LABGI totally failed to provide for business growth. The hon. Lady should therefore be rejoicing at the scheme that I have announced, because it does all the things that LABGI promised, without being complex, overbearing and, ultimately, a failure.
Mark Pawsey (Rugby) (Con)
Businesses in Rugby will welcome the news that their payments to the local authority will be used directly to develop local services and attract new businesses. However, will the Minister confirm that provisions will be in place to ensure that other councils do not raise rates too high and drive firms away or out of business?
Mr Pickles
I am pleased to be able to give my hon. Friend that assurance, because for precisely the reasons that he suggested, we are retaining the existing formula, to ensure that councils benefit with real economic growth not increased taxation.