Second reading of Local Government Finance Bill

11 January 2012

Secretary of State for Communities and Local Government, Eric Pickles, introduced the second reading of the Local Government Finance Bill in the House of Commons on Tuesday 10 January.

The Bill passed with a division (Ayes 332; Noes 232). The Bill will now be considered in Committee of the whole House (in the Commons Chamber). Shadow Secretary of State for Communities and Local Government, Hilary Benn, responded on behalf of the Opposition.

Watch and read the second reading debate and the views expressed by MPs on Parliament TV and in Commons Hansard. Also find parliamentary material on Local Government in the Topics and News sections.

Summary of the Bill

The Bill would introduce local retention of non-domestic rates, subject to various checks and balances, and would allow for the introduction of Tax Increment Financing by introducing possible new income streams against which councils would be able to borrow. The same provisions could also be applied to Enterprise Zones.

The Bill will also provide a framework for the establishment of local systems of support for council tax payers, to replace Council Tax Benefit, from April 2013. There are also measures to amend council tax legislation, including removing exemptions for certain types of empty property.

Keep up to date with all the proceedings and documentation on the Local Government Finance Bill and find out how a Bill becomes an Act of Parliament

House of Commons Library analysis

The House of Commons Library produce briefing papers to inform MPs of key issues. The Library published a briefing paper for second reading on the Local Government Finance Bill.

Second reading

Second reading is the first opportunity for MPs to debate the main principles of the Bill. It usually takes place no sooner than two weekends after first reading.

What happens at second reading?

The Government minister, spokesperson or MP responsible for the Bill opens the second reading debate. The official Opposition spokesperson responds with their views on the Bill.

The debate continues with other Opposition parties and backbench MPs giving their opinions. At the end of the debate, the Commons decides whether the Bill should be given its second reading by voting, meaning it can proceed to the next stage.

What happens after second reading?

The Bill proceeds to committee stage and will be considered in a Public Bill Committee or Committee of the whole House (in the Commons Chamber). Each clause (part) and any amendments (proposals for change) to the Bill may be debated.

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