Business rates has once again been at the forefront for the Government, by announcing in its Autumn Statement that it will be doubling small business rates relief for a further 12 months, says Prop-Search.
It was confirmed by the Chancellor that Small Business Rates Relief has been extended until April 2017, which means that around 405,000 of the smallest businesses will carry on receiving 100 per cent relief from business rates, with a further 200,000 benefiting from tapering relief.
An Associate Surveyor at Prop-Search, Samantha Jones, commented: “The Government is also undertaking a review of the business rates system and will report in the Budget 2016.
“In essence, local leaders will have radical new powers to take responsibility for driving local growth which will include allowing them to cut business rates as well as retaining their business rates revenue.”
The Local Government now has a new deal set out with the devolution revolution, which requires Local Authorities to make efficiency savings and, in return, offer them unprecedented new levels of power to generate growth for their area.
The Government is going to allow Local Government to keep the rates collected from business, which in turn will give Councils the power to cut business rates in order to boost growth. It will also give elected city-wide Mayors the power to levy a business rates premium for local infrastructure projects- with the support of local business.
It is said that the aim is that the Local Government will retain 100 per cent of business rate revenues to fund local services by the end of the Parliament, which will give them control of £13 billion of additional local tax revenues, as well as £26 billion in total business rate revenues.
Uniform Business Rate will be abolished and any local area can cut business rates as much as they like, which will win new jobs and generate wealth. By fixing the current broken system of financing Local Government, it will strengthen incentives to boost growth, help attract business and create jobs.
Also, elected city-wide Mayors will be able to add a premium to business rates to pay for new infrastructure, as long as they have support of the local business community through a majority of business members of their Local Enterprise Partnership.
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