News

2010-11-05 : New Government Proposal for Local Business Rates Welcomed

The business secretary, Vince Cable, revealed last week that councils could be given the power to keep the business rates collected locally in an attempt to stimulate regional economic growth.

The measure, which was announced in last Friday's White Paper on local growth, was welcomed by both the Local Government Authority and The British Property Federation. It is hoped the incentive will encourage new development and create jobs.

The same document also floated a proposal that councils should be allowed to keep all locally raised business rates, but this has alarmed most business owners as they believe it will be a mistake for councils to start setting their own rates in different areas. This move could lead to a possible increase in bureaucracy if several formal neighbourhood plans in towns and cities are created. More information would have to be known about these neighbourhoods, including how they will be defined and what status they will have.

Councils currently have the authority to impose a ‘business rate supplement' to pay for specific schemes but only where local companies vote in sufficient number for it. These are more commonly known as Business Improvement Development (BID) Schemes and are increasing in popularity in many towns in an effort to revitalise empty high streets. Business groups believe that any changes to the business rates should also be subject to the same process as these BID Schemes.

Ruddle Merz provide a comprehensive service to clients which includes rent negotiations as well as business rate reviews. Contact us on 0800 883 0353 or email enquiries@ruddlemerz.co.uk.