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Business Rate Supplements Bill

The hon. Lady is right to say that the circumstances of the London boroughs vary, but she may have missed what I said immediately before I gave way to her. In London, the authority with the power to levy the business rate supplement will be the GLA, not the London borough councils. This will not be a choice, or a power, that is exercisable by the hon. Lady's own London borough council. I recognise that the present difficult economic period makes it much harder for the House to deal with legislation of this kind, but it should also be recognised that, during such difficult financial times, there is a risk that investment and major projects will be sidelined because of short-term concerns. There is also a risk that we will retreat to a centralism that removes local discretion and flexibility, particularly when tough choices need to be made. Furthermore, there is a risk that we will not establish the powers and policies relating to skills, regeneration and worklessness that will be necessary both to see us through the current downturn and, more important, to enable us to make the most of the upturn that will follow.