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Dept of the Environment Transport and the Regions

Answer

Sir Peter Emery: To ask the Secretary of State for the Environment, Transport and the Regions for what reason part of funding for hardship relief payments is being met by local authorities; and if he will take steps to ensure that such funding is borne by the Government. [159369] Mr. Meacher: Local authorities are required to meet part of the cost of their decisions to grant rate relief to businesses suffering from hardship to reflect the benefit to the local community. Central Government normally funds 75 per cent. of the cost of granting such relief. We have increased central Government's contribution rate relief from 75 per cent. to 95 per cent. where relief is granted to small businesses who are suffering hardship as a result of foot and mouth disease. This increase applies to relief provided in these circumstances by 151 rural authorities in England, for an initial period of three months. This remains a discretionary rate relief scheme and it is therefore right that local authorities have a stake in the decisions they make on the award of rate relief. I am keeping the scheme under review on the basis of evidence of how it is operating and waiting for across the board evidence on local authorities' position from the Local Government Association.

Secondary information

Type

Written question

Reference

367 c755-6W; 159369

Session

2000-01

Subjects

Compensation Foot and mouth disease Local government Business rates Small businesses

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk