Posts Tagged 'localism'

New local growth proposals will benefit Brighton & Hove

The announcement that our proposal for setting up a new Local Enterprise Partnership – “Coast to Capital” – had been successful grabbed most of the headlines this week. But there were also a number of other important pro-business proposals announced as part of the Local Growth White Paper which passed under the radar somewhat and which I would like to highlight.

In particular, I warmly welcome the proposals around restoring a degree of local accountability to business rates.

Under the current system councils such as Brighton & Hove collect business rates but they are then passed straight to central Government who redistribute them to all local authorities according to a complicated ‘needs’ formula. Over £20bn of business rates collected by councils are pooled and redistributed in this way. The result is that whilst councils have a vital role in supporting the local economy, we have very little financial incentive for encouraging new business start ups.

So, the Government is now proposing that we be allowed to keep the money we raise in new business rates, thereby giving us a more direct stake in the future of our local economies and access to funding to deliver services that our communities (and businesses) need. This is not a full relocalisation of business rates that many people are calling for but it is nevertheless an important step forward and emphasises once again the Coalition Government’s ‘localist’ credentials.

Hand in hand with this is the proposal to introduce new powers for councils to borrow money for regeneration schemes against the future business rate revenues that the redevelopment would bring in. This so-called Tax Increment Financing is widespread in many other countries, in particular, the USA, and I would warmly welcome this in Brighton & Hove. Finding funding for major projects is never easy, particularly in the current economic climate and this would give us another viable option for business redevelopments.

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Conservative Spring Forum comes back to Brighton

It was a hectic week for me last week with our annual budget council meeting on Thursday and then the Conservative Spring Forum at the weekend.

I was really pleased that we were able to get our budget voted through and that there was no repeat of the ‘Core Strategy’ Council meeting last December when the ‘Rainbow Coalition’ (Greens, Labour and Lib Dems) voted us down on some key transport policies. So we were able to get through a council tax increase of just 2.5% which is the lowest rise since the Council was formed in 1997. We were also able to put some additional investment into areas such as youth work, improving the seafront, winter maintenance and replacement floodlighting for the Royal Pavilion. It is very important that we keep the City looking as good as possible to attract the visitors and tourists that the local economy relies upon.

As I said, at the weekend the Conservative Spring Forum was held at the Metropole and it was great to be able to host the party in my home town! Brighton & Hove is, for many members,  still associated with the dreadful IRA bombing of the Grand in 1984 and so it is a big step for the organisers to come back to our City. The weekend itself went very well from what I saw and also from talking to many delegates who were delighted to be here. Hopefully it will be the first of many more visits in the near future.

For my part, I took part in a session with Caroline Spelman MP, who is the Shadow Secretary of State for Communities and Local Government. There will be some interesting and, in my view, beneficial changes in this area if the Conservatives win the general election in May (or whenever it is called!). I hope that a Conservative Government will feel able to trust local councils such as ours with greater powers and freedoms than we currently have because I believe very strongly that at present our ability to help residents is  stifled by red tape and centrally imposed controls and restrictions. A key part of this is the pledge to abolish the whole tier of regional quangos which many of us feel are both wasteful and contrary to the priniciples of localism which we all believe in. For those of you who may be interested, there are more details in the Control Shift policy paper.


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