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Local Government Finance

I hope that the hon. Gentleman will do me the courtesy of letting me answer his party's spokesman. The right hon. Gentleman referred to pooling, but I think that he meant the provisions under the Local Government Finance Act 1988 by which the totality of the money raised by the national non-domestic rate, the business rate, must be returned to local government. That continues to be the case. In this year, when the totality of non-domestic rate raised was more than the formula grant, the rest was returned by way of grant to local authorities outside formula grant, and that remains an option. Everything comes back to local government one way or the other, and that is the statutory requirement that the Government have consistently met. The right hon. Members for Wentworth and Dearne (John Healey) and for Leeds Central asked about referendums and what does and does not qualify. Referendum provisions apply to the billing authority in a two-tier area—a district or unitary council or a London borough—and to major precepting authorities: a county council, police authority or fire authority. In each case it is their own element that is subject to the referendum, so the district council cannot be forced into a referendum because of an increase by the county council, or vice versa. When we talk about levies, we are not talking about precepts, as the right hon. Member for Leeds Central knows, but about the rather more technical payments that we generally get from passenger transport authorities or drainage boards— Six hours having elapsed since the commencement of proceedings on the motion relating to Police, the Deputy Speaker put the Question (Order, 6 February). Question agreed to. Resolved,"That the Referendums Relating to Council Tax Increases (Principles) (England) Report 2012-13, which was laid before this House on 31 January, be approved." The Deputy Speaker then put the Question necessary for the disposal of the business to be concluded at that time (Order, 6 February) Motion made, and Question put,"That the Local Government Finance Report (England) 2012-13 (HC 1801), which was laid before this House on 31 January, be approved.—[Robert Neill.]" The House divided: Ayes 292, Noes 213.