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Commons2nd readingView on Parliament.uk

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

Last Updated

7 February 2018

In Plain English

AI-generated

The Local Government Finance Bill would allow local authorities to retain 100% of the business rates they collect locally, instead of sending some of that money to central government. It is intended to give councils more control over local funding and services, with related provisions described as “connected purposes.” The bill is currently at the 2nd reading in the House of Commons.

Key Points

  • 100% retention of locally collected business rates by local authorities
  • Aims to give councils more control over funding for local services and local economic priorities
  • Includes connected or related measures on local government finance
  • Parliamentary passage has involved multiple votes across years, with broad cross-party consideration
  • Next steps would be committee stage and further readings if it progresses to become law

Progress

The bill is at the 2nd reading in the Commons. If it advances, it would move to committee stage and then further stages in both Houses.

Voting

Votes on the bill have shown large overall majorities in favour in successive readings (e.g., Third Reading 2025: 339 Aye to 172 No; Second Reading 2024: 332 Aye to 176 No). Conservative MPs largely opposed, while Labour, SNP and other parties generally supported; amendments have often been defeated (e.g., 2024-11-27: 112 Aye, 333 No).

Who is affected?

Local authorities (councils)Businesses that pay business ratesLocal residents and taxpayers relying on local servicesCommunities and service users affected by local government funding

Generated 21 February 2026

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
75 / 21
Your PartyGenerally For
7 / 2
Labour (Co-op)Generally For
3728 / 1094
Scottish National PartyGenerally For
157 / 55
Liberal DemocratGenerally For
125 / 99
Green PartyMixed
4 / 4
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)