Leicester Liberal Democrats

Commenting on today's announcement of the Coalition's plan for Local Government Finances, which includes the re-localisation of business rates and the introduction of Tax Increment Financing (TIF), Liberal Democrat Communities Minister, Andrew Stunell said:

"The current formula grant system is broken - it is far too complex and lacks transparency. For too long councils have had to do whatWhitehall told them and could only spend whatWhitehall gave them.

"Today's announcement will give councils much greater freedom to raise their own money and promote growth in their areas.

"Crucially, no council will lose out in the first year of the scheme and there will be a system of tariffs and top ups so that the richest authorities share the proceeds of growth and the areas of greatest need are protected.

"This is a big step towards the empowerment of local communities, and it is vital to get it just right. The consultation on our proposals is an important part of the process, and I want to hear people's
responses loud and clear in the coming weeks.

"When it comes to localism, this government is determined to practice what it preaches."

ENDS

Contact: Henk van Klaveren Liberal Democrats Press Officer

t: 020 7227 1232 | m: 07922 884 675 | Out of hours: 020 7340 4949 | e: henk.vanklaveren@libdems.org.uk | 4 Cowley Street,London,SW1P 3NB