David Morris MP has welcomed the Chancellors conference speech which gives even more powers to local Government to retain business rates locally. Some large project such as Shale gas already have 100% of the rates they pay retained locally but the new announcements allow this practice to go even further.
The announcement means that:
- Local authorities will have control for setting business rates and keeping the revenue raised. The local government grant will be phased out altogether and councils will be given extra power and responsibilities for running their communities. The uniform business rate will be abolished.
- Cities with mayors will be able to levy a new infrastructure tax in the form of adding a premium of up to 2p in the pound to business rates to pay for new infrastructure.
- New “wealth funds” will be created which will channel local government pension scheme investments into infrastructure projects.
David Morris MP said:
“In his speech this week, George Osborne pledged to deliver the biggest transfer of power to local government in living memory. Councils will now set and keep all of their business rates – meaning more money will be raised locally and spent locally. As a local MP, I am delighted at this news - which I believe provides enormous economic opportunity for Morecambe as well as Lancashire more generally. The measures mean that we can help many of the exciting industries emerging on our doorstep and benefit as these firms grow. It incentivises local leaders to encourage enterprise and will go a long way to helping rebalancing of the economy and building a Northern Powerhouse.”