Local Government Finance Bill “forced through”
0The Local Government Finance Bill has been passed by parliament with a majority of 100.
At the second reading of the bill however, Labour MPs voiced strong concerns. John Healey, who served as a local government minister under Gordon Brown called the bill the “most fundamental change in local government funding since the poll tax.”
He added: “Like the poll tax, it is a big change being forced through too fast and, like the poll tax, there is not a concensus of support behind it.”
Councils are not being given sufficient time to plan for the changes, said former Labour minister Nick Raysford, warning of an “administrative fiasco”.
Shadow communities secretary Hilary Benn said that the bill would just replace one complicated system with another. “It is unclear how much incentive will be offered,” she said.
However communities secretary Eric Pickles said that the current formula grant system of distributing business rates was “a perverse regime of incentives.” The new system would make the best possible changes to foster more growth, generate more cash and make a bigger pot, he added.
