My Lords, the draft order which we are considering, if approved and made, will provide Greater Manchester with new, devolved powers on: planning, land acquisition and housing; transport; education and skills; and cultural events and entertainment. It also provides for constitutional and funding arrangements.

The Government have, of course, already made...

My Lords, the draft order which we are considering, if approved and made, will provide Greater Manchester with new, devolved powers on: planning, land acquisition and housing; transport; education and skills; and cultural events and entertainment. It also provides for constitutional and funding arrangements.

The Government have, of course, already made...

My Lords, the Minister is right to say that the Government are devolving significant new powers to Greater Manchester and perhaps to some other authorities as the process rolls forward. However, what they are not doing is accompanying the devolution of powers with anything like sufficient additional resources. The 10...

My Lords, the Minister is right to say that the Government are devolving significant new powers to Greater Manchester and perhaps to some other authorities as the process rolls forward. However, what they are not doing is accompanying the devolution of powers with anything like sufficient additional resources. The 10...

My Lords, I welcome the order. It is a final step in the devolution of powers to an elected mayor and combined authority in Greater Manchester, and should fulfil its basic aim of providing those local leaders with the levers they need to boost economic growth, which is the Government’s...

My Lords, I welcome the order. It is a final step in the devolution of powers to an elected mayor and combined authority in Greater Manchester, and should fulfil its basic aim of providing those local leaders with the levers they need to boost economic growth, which is the Government’s...

My Lords, the order before us today is one of a number of orders in respect of the Greater Manchester Combined Authority and puts powers in place so that when we get the mayor elected next May, they can hit the ground running. The powers here include the power to...

My Lords, the order before us today is one of a number of orders in respect of the Greater Manchester Combined Authority and puts powers in place so that when we get the mayor elected next May, they can hit the ground running. The powers here include the power to...

My Lords, I thank noble Lords who have participated in the debate very much indeed and will seek to deal with the points that they raised. The noble Lord, Lord Beecham, raised some points about funding which I will try to deal with. First, in relation to housing, he will...

My Lords, I thank noble Lords who have participated in the debate very much indeed and will seek to deal with the points that they raised. The noble Lord, Lord Beecham, raised some points about funding which I will try to deal with. First, in relation to housing, he will...

Lords motion to approve. Agreed to on question.

Lords motion to approve. Agreed to on question.

To ask Her Majesty’s Government what progress they have made in implementing plans for the devolution of business rates to local government.

To ask Her Majesty’s Government what progress they have made in implementing plans for the devolution of business rates to local government.

I beg leave to ask the Question standing in my name on the Order Paper and draw the House’s attention to my interests as the directly elected mayor of Watford and a deputy chair of the LGA.

I beg leave to ask the Question standing in my name on the Order Paper and draw the House’s attention to my interests as the directly elected mayor of Watford and a deputy chair of the LGA.

My Lords, councils have long campaigned for 100% business rates retention. We recently conducted a consultation on our proposed approach and will publish our response

and our proposed way forward shortly. In the meantime, we will continue to work closely with local government to shape the reforms.

My Lords, councils have long campaigned for 100% business rates retention. We recently conducted a consultation on our proposed approach and will publish our response

and our proposed way forward shortly. In the meantime, we will continue to work closely with local government to shape the reforms.

I am very pleased to hear that, because close collaboration with local government is essential if this very new and radical approach is to work. Is the Minister aware that, as part of the new regime, councils are being asked to undertake new burdens, in particular the controversial attendance allowance benefit? Will the Government consider dropping these new and additional burdens in favour of allowing us to fund existing ones, such as adult social care?

I am very pleased to hear that, because close collaboration with local government is essential if this very new and radical approach is to work. Is the Minister aware that, as part of the new regime, councils are being asked to undertake new burdens, in particular the controversial attendance allowance benefit? Will the Government consider dropping these new and additional burdens in favour of allowing us to fund existing ones, such as adult social care?

My Lords, the noble Baroness is right that there is discussion on attendance allowance being devolved, although no conclusion has been reached on that. We are currently considering responses on that. I do not think we have had a response from Watford in general terms on the reforms we are suggesting.

My Lords, the noble Baroness is right that there is discussion on attendance allowance being devolved, although no conclusion has been reached on that. We are currently considering responses on that. I do not think we have had a response from Watford in general terms on the reforms we are suggesting.

My Lords, will the Government, in the course of changing the new system, allow local authorities to vary the business rate, or will the level of business rates still be determined at national level and merely the receipts be localised? Further, what steps will the Government take to redress the imbalances that will arise from some areas having significantly higher potential yield from business rates than others?

My Lords, will the Government, in the course of changing the new system, allow local authorities to vary the business rate, or will the level of business rates still be determined at national level and merely the receipts be localised? Further, what steps will the Government take to redress the imbalances that will arise from some areas having significantly higher potential yield from business rates than others?

My Lords, as I indicated, we are consulting on this and we will discuss it with local government as the reforms come forward. On the general point on redistribution, that has to be an element of this. The noble Lord is quite right that some local authorities will be in receipt of far more in business rates than others. We will need a corrective mechanism to deal with that.

My Lords, as I indicated, we are consulting on this and we will discuss it with local government as the reforms come forward. On the general point on redistribution, that has to be an element of this. The noble Lord is quite right that some local authorities will be in receipt of far more in business rates than others. We will need a corrective mechanism to deal with that.

My noble friend mentions consultation. What consultation is taking place with representatives of the retail trade and small businesses?

My noble friend mentions consultation. What consultation is taking place with representatives of the retail trade and small businesses?

My Lords, obviously the consultation is primarily designed to take account of the position of local authorities. That is something we are taking forward. I am sure that feeding through views from retailers will be something local authorities will wish to bring forward in the consultation and discussion we are having.

My Lords, obviously the consultation is primarily designed to take account of the position of local authorities. That is something we are taking forward. I am sure that feeding through views from retailers will be something local authorities will wish to bring forward in the consultation and discussion we are having.

My Lords, to follow up on the Question, and given that the new responsibility is placed on local government, do conversations take place with the Treasury as to whether local authorities can afford to take on that responsibility? What is the process? Is everybody involved in the discussion, or is it just one side working against another?

My Lords, to follow up on the Question, and given that the new responsibility is placed on local government, do conversations take place with the Treasury as to whether local authorities can afford to take on that responsibility? What is the process? Is everybody involved in the discussion, or is it just one side working against another?

My Lords, the first point I make to the noble Lord is that, although new responsibilities are being talked about, he will recognise

that a considerable amount of new finance will be generated by 100% business rate retention. We are talking about some £12.5 billion—a considerable sum. Yes, of course the discussion is both within government and, as I indicated, with our local authority partners.

My Lords, the first point I make to the noble Lord is that, although new responsibilities are being talked about, he will recognise

that a considerable amount of new finance will be generated by 100% business rate retention. We are talking about some £12.5 billion—a considerable sum. Yes, of course the discussion is both within government and, as I indicated, with our local authority partners.

My Lords, does the Minister agree that business rate income for local authorities can be quite erratic and unpredictable, particularly for small local authorities, owing to the large number of appeals against business rate valuations now in the system? Will the Minister take steps to speed up the process of dealing with such appeals? Does he understand that, for many local authorities, it is very difficult to plan a budget for the next year without putting aside a serious amount of reserve money—which could otherwise be used for services—as a means of mitigating potential risks arising from a reduction in business rate owing to appeals, which can involve the payment of refunds as well as reducing the current year’s income?

My Lords, does the Minister agree that business rate income for local authorities can be quite erratic and unpredictable, particularly for small local authorities, owing to the large number of appeals against business rate valuations now in the system? Will the Minister take steps to speed up the process of dealing with such appeals? Does he understand that, for many local authorities, it is very difficult to plan a budget for the next year without putting aside a serious amount of reserve money—which could otherwise be used for services—as a means of mitigating potential risks arising from a reduction in business rate owing to appeals, which can involve the payment of refunds as well as reducing the current year’s income?

My Lords, the noble Lord is right about there being an element of risk and volatility in the system. We are seeking to address both those points to ensure that we smooth the process. Risk from a single business on which a local authority was very dependent would perhaps create an issue and so would appeals, which, as the noble Lord indicated, can have an effect on cash flow. We are seeking to address both of those in discussions with local authorities. We also have a technical working group drawing on people from local authorities as well as from the DCLG and elsewhere to address the very issues that the noble Lord raises.

My Lords, the noble Lord is right about there being an element of risk and volatility in the system. We are seeking to address both those points to ensure that we smooth the process. Risk from a single business on which a local authority was very dependent would perhaps create an issue and so would appeals, which, as the noble Lord indicated, can have an effect on cash flow. We are seeking to address both of those in discussions with local authorities. We also have a technical working group drawing on people from local authorities as well as from the DCLG and elsewhere to address the very issues that the noble Lord raises.

My Lords, I welcome what the Minister has said about looking at distribution to more disadvantaged areas. Given the recent report from the Social Mobility Commission highlighting blackspots of disadvantage across the country, will he look again at the funding of local authorities to see whether some money can be found to help them improve the life chances, the social mobility and the social opportunity of disadvantaged young people in their areas?

My Lords, I welcome what the Minister has said about looking at distribution to more disadvantaged areas. Given the recent report from the Social Mobility Commission highlighting blackspots of disadvantage across the country, will he look again at the funding of local authorities to see whether some money can be found to help them improve the life chances, the social mobility and the social opportunity of disadvantaged young people in their areas?