Up to £45.5m of new Coalition cuts could hit Hull in 2014

Hull City Council could lose up to £45.5 million for local services each year, following Coalition Government plans confirmed today by Local Government Secretary Eric Pickles.

In Government plans on Business Rates announced in the House of Commons today, the Coalition only promised that local authorities likely to lose out under the changes will not do so in the first year of 2013/14. From the following year the financial outlook appears less positive for places such as Hull.

Meanwhile, from 2014/15 Westminster home to the some of the World's richest businesses, shopping streets and tourist attractions could get to keep all or much of the £1 billion it presently contributes to the national Business Rates pool. This money is currently redistributed to other councils around the country according to need.

Speaking after challenging Eric Pickles on his plans in the House of Commons, Hull North MP Diana Johnson said: "Already the Tory-led Government has targeted Hull with the deepest cuts in council funding 9% this year alone compared to 2.5% in Kingston upon Thames.

"Now, from 2014, barring a local economic regeneration miracle on an unprecedented scale, I'm concerned that we will see Hull losing out again.

"With the overall local government funding cake also being reduced by the Government, I do not see how councils in wealthier areas can gain without more deprived areas losing out.

"Those wealthier areas such as Westminster who already have a strong business base start with an in-built advantage over less fortunate areas, such as Hull, in being able to attract further businesses. This system will widen that wealth gap."

The Business Rates plans were previously announced on 29 June by Lib Dem Deputy Prime Minister Nick Clegg.

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