Business Rates and Employers' Contributions
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to paragraph 4.63 of the Autumn Budget 2024, published on 30 October, HC 295, whether the £1.3 billion new grant funding includes central government funding for (a) freezing of the small business rate relief multiplier, (b) retail, hospitality and leisure relief and (c) compensation for changes to employer National Insurance contributions for public bodies in 2025-26.
Answered by Jim McMahon
On 28 November we published a policy statement setting out details on the Local Government Finance Settlement for the next year for councils across England, as well as the government’s wider intentions to fix the foundations of local government over the course of this Parliament.
The £1.3 billion of new grant funding, does not include grant compensation that will be paid to local government for the decisions to freeze the small business rates multiplier, and to award relief to eligible retail, hospitality and leisure businesses in 2025-26. Compensation for these tax policy measures will be paid to local authorities during through the normal business rates retention system processes.
Additional to the £1.3 billion of new grant funding, the Government has committed to provide support for public sector employers for changes to employer National Insurance Contribution costs. This applies to those directly employed by the public sector, including local government. We will set out further details at the provisional Settlement in December.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →