LEADING councillors across the county have welcomed proposals unveiled by Chancellor George Osborne to allow them to keep business rates raised in their area.
Under the plans, which took councillors by surprise, £26billion worth of business rates will stay in the hands of local councils by 2020.
Currently 50 per cent of the cash raised from rates are sent to Whitehall where the money is divied up and then sent back as grants, which vary so areas with fewer businesses don’t lose out.
Deputy leader of Worcesteshire County Council Simon Geraghty welcomed the plans but raised concerns about a two-tier system of local government being created between councils that can and can’t raise business rates.
“All councils should be treated equally, business rates will only be allowed to be raised by councils with an elected mayor,
that’s something we will be lobbying on,” Coun Geraghty said.
“We very much welcome the announcement by the Chancellor and the steps towards greater local retention of business rates in Worcestershire. The retention of the proceeds of growth will help us to further drive Worcestershire’s economy.
“We now need further details on how the system is going to work and how transition will take place.
“For Worcestershire to realise the full benefits of any new system, we must be able to respond to local business and community needs. This includes the powers to reduce rates to attract more business, along with powers to raise funds for vital infrastructure projects in this county.”
Wychavon District councillors also welcomed the decision announced at the Conservative Party conference in Manchester, but are waiting for more details to be announced on how the policy will work.
Coun Lynne Duffy, portfolio holder for resources on Wychavon District Council, said: “Supporting our economy and helping businesses to grow is a key priority for Wychavon and will continue to be over the next four years, so this is welcome news.
“However, we want to carefully consider the detail, particularly the implications of any future revaluations and how they will be dealt with given the recent decision regarding GP surgeries which has cost the council £1.4m in refunds.”
