local growth

Councils Get Financial Incentive to Promote Local Growth

Local councils will have the power to keep the business rates they raise from later this year, the Government has announced, following the end of a six-month review into council finance. At present, councils collect payments from local businesses and send them to central government for redistribution. Under the reforms, councils will be able to retain business rates and borrow against future rate income. The Government said this would create a financial incentive for local authorities to promote growth, as councils which expanded their business base would now directly benefit from increased revenue. The British Chambers of Commerce (BCC) said that the move would help small firms as it would encourage a “pro-growth and pro-business” attitude in local government. “Local ret... »