THE Government will today be urged to set out how it plans to make controversial changes to business rates fair.

Sunderland Central MP Julie Elliott will challenge the Government over its plans to localise business rates in a Parliamentary debate she has secured on the issue amid cross-party concerns about the changes.

The debate in Westminster Hall comes as the coalition has outlined plans to let councils keep most of the business rates they collect. Speaking ahead of the debate, the Labour MP said: “The reason I have called for the debate is that it is such an important issue for the whole region.

“It doesn’t matter whether you are in Sunderland, which I represent and is an urban area, and whether you are in rural Northumberland.

“The impact is going to be exactly the same because we have still got the same problems of population in that we are an ageing population, we have more looked after children than in affluent areas.

“All of these require more public support, which costs money. The service level that the North East council has to provide is significantly higher than the Kensington and Chelseas of this world. Yet the funding is going to be completely the opposite.”

Under the Government’s plans, she claimed better off areas would enjoy an increase in funding and that the proposals would encourage retail developments rather than manufacturing.

“It is almost like the Government telling us to do one thing and then they are almost penalising us for it.”