Clegg says Councils Will Keep Business Rates

Councils in England will be allowed to keep the business rates they collect rather than paying them into Treasury, under new government plans.

Deputy PM Nick Clegg said councils had no financial incentive to boost growth and prosperity in their areas but added that the changes would also be fair and poorer areas would not get less than they currently do.

Mr Clegg told the LGA conference in Birmingham last week that the tax system was currently "over-centralised" with just 5% of the tax take being raised locally.

Mr Clegg said "By localising the retention of business rates you are given a dramatic new incentive to work with business and with others, in order to boost economic prosperity in your areas."

Councils will also have the power to borrow against business rate income to fund local development.

For more information on your business rates bill contact Fiona Kelly:

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