Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Communities and Local Government, what steps he is taking to encourage local authorities to (a) create a business-friendly environment and (b) expand their business rates base.

The business rates retention scheme was introduced in 2013-14 to give councils greater autonomy over their finances and to incentivise them to grow their business rates base. According to local authority forecasts, 54% of authorities benefitted from growth above assumed levels in 2013-14, which has risen to 91% in 2016-17. By the end of the Parliament, local authorities will retain 100% of their business rates, further strengthening the incentive for growth. Councils will also have the power to cut the business rates multiplier to improve the business environment for enterprise and attract further businesses to their area.