Foster and Rudd in row over business rates claim
A row has erupted over a Tory press release which Labour says proves the party is out of touch.
Conservative hopeful Amber Rudd claimed this week businesses in Hastings and St Leonards were suffering because the rates they pay are not coming back to support local companies.
The release, which also quoted leader of Hastings Borough Council (HBC) Cllr Peter Pragnell and deputy leader Cllr Matthew Beaver, claimed a 23 million shortfall in the amount collected by the Government and the amount returned to Hastings over the past three years.
Business rates are paid into a central pot and then redistributed according to need as part of the Central Government Grant. Some of that can then be used to help local companies as HBC or East Sussex County Council (ESCC) – both Tory controlled – see fit.
Crucially Ms Rudd and her colleagues apparently failed to realise that ESCC also gets money from the Government, some of which will be given to Hastings.
Adding in the money from ESCC, Michael Foster MP estimates the town has actually received 15.3 million more than local businesses contributed to the central pot.
Mr Foster said: "Can't they get anything right? Is it incompetence or something worse?
"The Tories simply chose to ignore ESCC in their calculation. Did they forget – or maybe they're ashamed of their Tory cousins at County Hall?
"Perhaps the Tories want business rates collected in Hastings to be kept in Hastings. Fair enough but that would have meant the town losing out on 15.371million.
"This is another case of the Tories showing just how out of touch they are. Anyone who lives in the town knows money is being invested; one just needs to look at the new college on Station Plaza to see that."
Ms Rudd hit back: "The figures I quoted were supplied under a Freedom of Information Act request and the figure of 25million was the total amount of the business rates refunded directly to Hastings, only a part of which was used to support local businesses.
"So, in reality, Hastings businesses get even less support than the overall figures would imply. I don't think the people of Hastings benefit from arguments over statistics. If Michael Foster wants to understand how our local businesses are struggling, he should talk to some of the ones that have contacted me."
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Weather for Hastings
Sunday 12 February 2012
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