Communities and Local Government Committee: Press Notice

Session 2006 - 07 8 May 2007



Sir Michael Lyons’s recent report to Government on local government included a proposal that  local authorities be permitted to introduce a supplementary business rate.

The Communities and Local Government Committee has today agreed to conduct an inquiry into Local Government Finance: Supplementary Business Rate.   The Committee will examine the case for Government to introduce a power for local authorities to levy a supplement on the business rate within their area, including addressing the following issues:

• the rationale for introduction of a supplementary business rate;

• accountability and approval mechanisms for the introduction of a supplementary business rate at a local level - the role of business and the wider community;

• consideration of implementation issues, including the impact on local authority tax bills and decision-making in two-tier local authority areas;

• the impact of a supplementary business rate on equalisation;

• the appropriate scale of the supplement, and

• the threshold for payments and whether small businesses should be required to pay.

The Committee invites the submission of written evidence addressing these issues by Friday 8 June 2007. 

A public meeting to take oral evidence is expected in June.  Details of this meeting will be announced later.

Further information on this inquiry can be found at:

Contact: Jessica Mulley, Clerk of the Committee, tel: 020 7219 3927, email:

Further Information:

Written evidence must if possible be submitted in an electronic format, preferably by e-mail to  The e-mail must include a contact name, telephone number and postal address. If sent by post it should be sent to Jessica Mulley, Committee Clerk, CLG Committee, 7 Millbank, House of Commons, London SW1P 3JA. Witnesses submitting written evidence in manuscript are respectfully requested to take particular care that it is legible.

Submissions should be as brief as possible. It is helpful to include a summary with longer submissions. Those submitting evidence are reminded that evidence should be original work, not previously published or circulated elsewhere. Once submitted no public use should be made of it. Detailed guidance on the submission of written evidence can be found at

If you have any queries regarding the submission of evidence or would like to discuss your memorandum, please contact Jessica Mulley (020 7219 3927,

Notes for editors

1. Sir Michael Lyons’s report, Place-shaping: a shared ambition for the future of local government, was published in March 2007. Details of his inquiry and the final report can be found at:

2. The Communities and Local Government Committee is appointed by the House of Commons to examine the administration, policy and expenditure of the Department for Communities and Local Government.  Its membership comprises eleven Members of Parliament.

3. The membership of the Communities and Local Government Committee is as follows: Dr Phyllis Starkey MP (Chair, Lab), Sir Paul Beresford MP (Con), Mr Clive Betts MP (Lab), John Cummings MP (Lab), Martin Horwood MP (Lib Dem), Mr Greg Hands MP (Con), Anne Main MP (Con), Mr Bill Olner MP (Lab), Dr John Pugh MP (Lib Dem), Emily Thornberry MP (Lab), David Wright (Lab).

Media inquiries should be directed to:

Laura Kibby, Select Committee Media Officer

Tel: 0207 219 0718/ Mobile: 07917488557 / e-mail: