Written Statement of 4 July 2003

DEPUTY PRIME MINISTER

  Local Authority Business Growth Incentives
  The Minister for Local Government, Regional Governance and Fire (Mr. Nick Raynsford)
  The Government have today launched a consultation into how they might use s.71 of the Local Government Bill currently before Parliament to allow local authorities to retain business rates revenues. This consultation is being conducted jointly between the Office of the Deputy Prime Minister and HM Treasury.

  The new Local Authority Business Growth Incentives scheme will affect all English local authorities—except fire and police—and will start in April 2005. It will give local authorities an incentive to encourage business in their areas, and will reward their contribution and encourage strong and successful partnerships between local authorities, business and other local and regional players.

  The current Local Government finance structure does not fully recognise or reward local authorities' contribution to economic growth. Local authorities bear many of the costs of economic development although they do not benefit from the increased revenues it generates. Since 1990 business rate revenues have been paid into a central pool so that local authorities get no direct individual or local benefit.

  This consultation sets out a scheme for reforming this arrangement by allowing local authorities direct retention of some business rate revenues. This scheme introduces incentives for local authorities to lead the economic development of their community by encouraging strong and successful partnerships with business and other local and regional players.

  We are convinced that all local authorities irrespective of their economic circumstances, should be able to benefit from the scheme. The proposals therefore balance the need to maintain a strong incentive for existing high growth authorities with the need to provide greater incentives and benefits to deprived and low growth authorities. In particular, the scheme provides local authorities with a clear opportunity to tackle the enterprise gap in their areas and to integrate enterprise with the regeneration of their communities.

  The proposals in this consultation provide a real opportunity for authorities to secure additional resources. No authority will lose, and there is no question of extra revenue from this scheme being offset against other income.

  We are also committed to devolving more decision making to a local level. Therefore, benefits from the scheme will not be ring fenced and local authorities and their electorate will be free to decide whether and how to respond to the incentives created by the scheme.
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  The consultation document sets out the principles and concepts that will guide the design of the scheme. Having considered the responses from the consultation the Government will draw up the appropriate secondary legislation and will hold a further consultation on this in 2004. This secondary legislation will then be introduced into Parliament in time for the scheme to be introduced fully from the 1 April 2005.

DEFENCE

  RAF Brize Norton, Lyneham and St. Mawgan
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  On 9 November 2001 I announced a Strategic Review of the future roles of RAF Brize Norton, RAF Lyneham and RAF St. Mawgan, anticipating the arrival of the Future Strategic Tanker Aircraft and the A400M around the end of the decade. The introduction of these modern aircraft will provide enhanced operational capability whilst creating spare capacity at RAF Brize Norton and RAF Lyneham. The airfield at RAF St. Mawgan was included in the Review as it too was recognised as having spare capacity.

  The first stage of the Review was the selection of a base for the A400M. I announced on 16 August 2002 that I had accepted the Study team's recommendation that RAF Brize Norton represented the best use of Defence assets in this respect, at the optimum cost to the taxpayer. Prior to this, I announced to the House on 13 February 2002, Official Report, columns 363–64W, that the Future Strategic Tanker Aircraft would also be based at Brize Norton.

  I am now able to inform the House that the second stage of the review, looking at the future use of the three stations in the light of these earlier decisions, has now concluded. I have considered the recommendations and have decided that the RAF's Air Transport and Air Refuelling fleets should be based at RAF Brize Norton by 2012. This includes the Hercules C130J aircraft currently based at RAF Lyneham which will transfer to RAF Brize Norton. We intend that the C130K fleet will remain at RAF Lyneham until the aircraft goes out of service by 2012, after which, if no further Defence use is identified for RAF Lyneham, the Station will be closed and disposed of. The Tactical Communications Wing, currently located at RAF Brize Norton, will be relocated to an alternative site by 2006. Concentrating the aircraft fleets at RAF Brize Norton will enable us to make the most efficient and effective use of the Defence estate and allow the adoption of modern working practices.

  In respect of St. Mawgan, where only the airfield was under consideration, I have concluded that this should be retained, subject to further work to explore the commercial opportunities for its use and so offset the cost of its operation to Defence.

  The net effect of these changes, when complete, will be a reduction of around 1780 Service and 360 MOD civilian posts together with a move of around 620 personnel of the Tactical Communications Wing. Approximately 580 lost posts relate directly to the

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  closure of RAF Lyneham with the other manpower reductions a result of the introduction of the new manpower-efficient aircraft. At RAF Brize Norton, MOD manpower numbers will remain much as they are now. The number of contracted personnel has yet to be determined.

  I understand that this decision will be disappointing for the dedicated military and civilian personnel at Lyneham who have contributed so much to recent operations. I recognise too the disappointment that will be felt by those in the local area who give the Station much-valued support. RAF Lyneham has a long and proud history. However we must make best use of Defence resources, including by regular review of the Defence Estate to ensure we retain no more than is required to meet Defence needs.

TREASURY

  Customs and Excise
  The Economic Secretary to the Treasury (John Healey)
  In a written statement to the House on 26 November 2002,Official Report, column 9WS, I announced that the Attorney-General and I would be asking a High Court judge to review the current practices and procedures relating to disclosure, associated investigation techniques and case management in HM Customs & Excise's criminal cases.

  We received the report of the hon. Mr. Justice Butterfield yesterday and are now considering it. We plan to publish his findings before the House rises for the summer recess.