Barbara Keeley MP


Labour Shadow Ministers say Nick Clegg must explain how councils won’t lose out under localisation of business rates

Salford Civic CentreBarbara is asking the Deputy Prime Minister to explain exactly how the Government proposes to change the financing of local councils, as changes could see Salford City Council lose £36 million while City of London Council could gain over £555 million.

Barbara, Shadow Minister for Communities and Local Government and Caroline Flint MP, Shadow Secretary of State for Communities and Local Government, were responding to a speech by Nick Clegg at the LGA Conference. The speech laid out proposals to change Local Government financing through localising business rates.

Barbara said:

“Nick Clegg has announced that the Government intends to localise business rates but he has not explained how this would affect councils like Salford which serve areas with a high rate of deprivation. If business rates were entirely localised, Salford would lose £36 million a year while City of London Council could gain £555 million.

"Councils like Salford have already been hit hardest by the Conservative Government’s swingeing front-loaded cuts.  I call on the Government to set out in detail exactly how Ministers will ensure that councils like Salford will not lose out through these plans to localise business rates.”

Caroline Flint MP said:

"Those councils that serve Britain's most disadvantaged communities have suffered the worst of the Conservative-led Government's cuts. We have seen already how little promises mean to Nick Clegg. Until he sets out in detail exactly how he will ensure that councils won't lose out under the localisation of business rates, we can't take his word seriously."

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