Business rates could boost coffers by £10m
CHESHIRE East Council could bank an extra £10m thanks to the announcement that local authorities will be able to keep more of their business rates.
Cheshire East currently collects around £130m in business rates and keeps just 27 per cent – around £40m.
It then receives formal grants of around £80m under devolution.
But Chancellor George Osborne has announced that by 2020, local authorities will be able to keep the proceeds from business rates raised in their area.
This could mean an extra £5m-£10m could go to Cheshire East coffers.
The change also means the council will be freed to cut business rates to attract new jobs, and elected mayors in big cities like Manchester, London and Sheffield will be allowed to add a premium to rates to pay for major infrastructure projects.
Councillor Michael Jones, Cheshire East Council leader, said: “This is excellent news and something we have been seeking for some time.
“Cheshire East Council has the largest number of small and medium sized businesses in the North West and contributes significantly as one of the economic powerhouses of the north and for the UK.
“This authority has created the right conditions to attract private sector investment, jobs, growth and business confidence.”
He added: “This announcement will help us to build on this success and invest even more into the local economy and continue to put our residents first.
“We have been delighted to be at the forefront of the Chancellor’s pilot scheme to encourage and incentivise growth in local businesses and work alongside Greater Manchester to trial this. This initiative will help to attract further investment, jobs and opportunities for the people who live and work here.”
Mr Osborne said devolving the raising and spending of business rates was one of “the biggest transfer of power to our local government in living memory” and would help restore local government, which had had its wings clipped “again and again” over the past decades by all parties, including the Conservatives.
He said: “It’s time to face facts. The way this country is run is broken. People feel remote from decisions that affect them. Initiative is suffocated. Our cities held back.There’s no incentive to promote local enterprise.
“It’s time we fixed it.”