PARLIAMENTARY WRITTEN QUESTION
Council Tax (17 November 2014)

To ask the Secretary of State for Communities and Local Government, what assessment he has made of the effect of changes to council tax resource equalisation on areas with high deprivation and low council tax bases.

Asked by:
Sir Alan Campbell (Labour)

In setting the baseline for the business rates retention scheme we took into account the needs and resources of local authorities. We restored the relative resources component of the system to the same level as in 2010-11. The methodology for the new Business Rates Retention scheme was set out as part of the announcement of the 2013-14 Local Government Finance settlement.

We have been clear that the main emphasis of the Local Government Finance settlement has now changed, so that instead of being focused on needs it now incentivises growth. Unlike the previous approach to local government funding the new approach offers all local authorities the opportunity to pursue local growth through locally retained business rates and through the New Homes Bonus. Revenue Support Grant is just one component of the resources available to enable local authorities to pursue their locally set spending priorities.

Answered by:
Kris Hopkins (Conservative)
24 November 2014