Andrew Stunell: Putting councils back in control of their own finances

Lib Dem Councillor Tim Prater has welcomed a Government announcement that local Council's will see benefits from business rates collected in their area. Tim Prater lobbied Communities Minister Andrew Stunell for the return of business rates to local authorities last year.

Commenting on Monday's announcement of the Coalition's plan for Local Government Finances, which includes the re-localisation of business rates and the introduction of Tax Increment Financing (TIF), Liberal Democrat Communities Minister, Andrew Stunell said:

"The current formula grant system is broken - it is far too complex and lacks transparency. For too long councils have had to do what Whitehall told them and could only spend what Whitehall gave them. Today's announcement will give councils much greater freedom to raise their own money and promote growth in their areas.

"Crucially, no council will lose out in the first year of the scheme and there will be a system of tariffs and top ups so that the richest authorities share the proceeds of growth and the areas of greatest need are protected.

"This is a big step towards the empowerment of local communities, and it is vital to get it just right. The consultation on our proposals is an important part of the process, and I want to hear people's responses loud and clear in the coming weeks. When it comes to localism, this government is determined to practice what it preaches."

Tim Prater commented:

"it's increcrible that at this moment, local councils and their residents see no benefit of the business rates paid in their area, and there is therefore less motivation for local councils to support and encourage local businesses. This government announcement changes that position, which is hugely welcome. Local Councils should work with local businesses and have a stake in seeing them prosper and grow."