Kentish Express Ashford & District
Town halls to get control of business rates
A plan to allow local councils to retain all the money they raise from business rates has been given a cautious welcome in Kent.
Chancellor George Osborne sprung a surprise in his speech to the Conservative party conference by announcing he was to hand complete control over business rates to town halls.
He also announced the government would abolish the uniform business rate – the additional government levy which forms part of the bill.
He described it as the “biggest transfer of power to local government” in recent history, saying the change would mean cities and communities no longer had to go to the government “with a begging bowl”.
He said: “All £26bn of business rates will be kept by councils rather than being sent back to Whitehall.”
Cllr Peter Fleming (Con), the leader of Sevenoaks District Council, said the news was a “massive surprise”.
“Frankly, if this is the case, it is the biggest reform in local government for a very long time.
“It represents the biggest transfer of power to local government for a very long time. “What we put in and get back is not the same.” He added that it would permit councils to be much more flexible when it came to raising income but, more importantly, give councils a way of driving investment into struggling areas.
Cllr John Simmonds (Con), Kent County Council cabinet member for finance, was more cautious but welcomed the idea. “It will be interesting to see how they roll this out. “It will give us some welcome freedom but we have been let down before.”
Locate In Kent chief executive Paul Wookey said: “The more investment a local authority can get into its area means the more business rates it will be able to collect.” “Every council will now be taking the same approach, which could make it harder to get firms to move to your area because everyone will be trying to attract more business.”
“It might also remove some barriers to speculative developments because builders will not have to pay rates on premises that no one has moved into.”
The Federation of Small Businesses also gave a cautious welcome.
National chairman John Allan said: “The surprise announcement to allow councils to retain business rates presents a huge opportunity for local authorities and business to work together to boost local growth, develop a fairer tax system and create the jobs of the future.”