LAST week, the House of Commons passed the second reading of the Local Government Finance Bill.

The Bill seeks to deliver economic growth by devolving greater financial powers and freedoms to local authorities so that they, in turn, can help businesses to prosper in their areas. It is a key part of the localism agenda.

Just before the second reading, I spoke about localism to the Stroud Rotary Club, and I have promoted the need for proactive local government to local councillors and businesses.

To achieve economic growth, we must lay the foundations for more investment, development of products and employment of young people.

The key measures in the Bill include enabling councils to directly retain a portion of their business rate growth.

This should stimulate a willingness by councils to encourage existing and new businesses to expand in the area.

I know of a number of opportunities where this measure could be very useful.

Another measure is the introduction of Tax Increment Financing, giving councils the freedom to borrow against future income from business rates in order to finance local infrastructure projects.

This amounts to a massive incentive for councils to fully engage with business in order to ensure that their interests and priorities are properly understood.

Coupled to the reform of planning, the Coalition Government is ensuring that local authorities can be powerful agents for economic growth.

Conservative run Stroud District Council is already pushing at the boundaries of existing powers to promote economic development, the canal regeneration being a striking example, but when the new measures come into force in April 2013, even more will be achievable.

One of my key priorities as your Member of Parliament is to put the Stroud Valleys and Vale on the right track for economic growth.

These measures will help us locally to do exactly that.

If you would like to discuss the issues raised above, please contact me on 01453 751572 or visit my website www.neilcarmichael.co.uk