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This paper summarises the Second Reading and Committee of the Whole House stages of the Local Government Finance Bill 2010-12, which has been carried over into the 2012-13 session. Library Research Paper 12/01, Local Government Finance Bill 2010-12, published for Second Reading on 10 January 2012 in the 2010-12 session, is relevant.

The Bill was introduced on 19 December and given its Second Reading on 10 January 2012. It was committed to a Committee of the Whole House over three days, 18, 24 and 31 January 2012. It was subject to a carry-over motion, passed on 10 January 2012, and remaining stages will now take place on 21 May 2012.

The Bill would make a number of changes to local government finance. These include:

• Introducing a scheme to allow for local retention of business rates

• Allowing for the introduction of tax increment financing

• Introducing a council tax reduction scheme to replace council tax benefit

• Making technical changes to council tax including introducing an empty homes levy

A number of Government amendments were made to the Bill during Committee. No other amendments were agreed.

More information about the Bill is available on the Bill pages on the Parliamentary website,

Explanatory notes are available and DCLG has also published a brief guide to the Bill.

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