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Commons2nd reading
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Local Government Finance Bill

A Bill to provide for 100 per cent retention of locally collected business rates; and for connected purposes.

Originating House

House of Commons

Parliament last updated

7 February 2018

In Plain English

AI-generated

May contain errors — check source documents for definitive information.

The Local Government Finance Bill would require local authorities to retain 100% of the business rates collected in their area, instead of sharing them with central government. It aims to give councils more control over funding for local services and related purposes. The bill is part of the Finance Bill process and is at the second reading in the House of Commons.

Key Points

  • 100% retention of locally collected business rates by local authorities
  • Shift of funding control for local services from central government to local councils
  • Includes connected or related purposes and provisions
  • Part of the Finance Bill process; has progressed through multiple readings and amendments in recent sessions
  • Affects local authorities, businesses that pay business rates, and local residents who rely on local services

Progress

Currently at the second reading in the House of Commons; the measure has previously moved through other readings and amendments in earlier sessions.

Voting

In the recorded votes, Labour and other opposition groups generally backed the measure, while Conservative MPs largely opposed. Other parties showed mixed positions, with SNP and Liberal Democrats generally supporting.

Who is affected?

Local authorities (councils)Businesses that pay business ratesLocal residents and taxpayers relying on local services

Generated 21 February 2026

Bill Stages

1st readingCommons

5 Sept 2017

2nd readingCommons
Committee stageCommons
Report stageCommons
3rd readingCommons
1st readingLords
2nd readingLords
Committee stageLords
Report stageLords
3rd readingLords
Royal Assent

How Parties Are Voting

Based on 47 recorded votes • Sorted by % Aye

Plaid CymruGenerally For
52 / 12
Social Democratic & Labour PartyGenerally For
12 / 3
IndependentGenerally For
103 / 26
Your PartyGenerally For
7 / 2
Labour (Co-op)Generally For
3699 / 1088
Scottish National PartyGenerally For
157 / 55
Liberal DemocratGenerally For
125 / 99
Green PartyMixed
4 / 4
Restore BritainMixed
1 / 1
Ulster Unionist PartyMixed
1 / 1
Traditional Unionist VoiceMixed
1 / 1
Democratic Unionist PartyMixed
48 / 79
Reform UKGenerally Against
38 / 102
ConservativeGenerally Against
749 / 2273
Sinn FéinMixed
0 / 0
SpeakerMixed
0 / 0
AllianceMixed
0 / 0

Updates & Documents

News (1)

News - Local Government Finance

1 Jan 1970
The Bill failed to complete its passage through Parliament before the end of the session. This means the Bill will make no further progress.

Parliamentary Votes (47)