Unpredictable funding system to hit LAs
0The Local Government Finance Bill is due to be debated in parliament today. The Bill contains proposals for: the business rate retention scheme; localisation of support for council tax; and other technical reforms to council tax.
The government finished its consultation on the design and implementation of a business rates retention scheme last October, but the proposals have already come under heavy fire. London Councils, the body representing the capital’s 33 local authorities added its criticism yesterday saying that the proposals were overtly complex and would undermine the capital’s economic growth.
Mayor Jules Pipe, London Councils chair, said: “This Bill has created a highly complex system which will create unpredictability, and denies authorities the benefits of rising local income from new and growing business.”
While the London councils support the principal of business rate retention, they are asking for more of the rates collected to be handed over to local authorities. The amount of money raised from business rates is forecast to rise, they said, but the government proposals will not see councils benefit from the extra income.
