Telford & Wrekin Council seeks bigger split of business levy to reinvest in local companies

Currently the authority gets just over half of the business rates in area, but now it has asked the government if the council can keep it all.

The council has put in its request as part of its devolution bid, which will see the borough becoming an enterprise area if successful.

The Labour-run cabinet met to pass its devolution plan after a request from the Government for ideas on how councils can be more independent.

Councillors said they want to designate the borough as an enterprise area, which would include developing a digital hub to help keep skilled jobs in the borough.

They hope that by keeping business rates they can reinvest the money across Telford & Wrekin.

Council officials say the Enterprise Telford plan would give it greater freedom and flexibility over issues such as business rates.

Councillor Kuldip Sahota, leader of Telford & Wrekin Council, said: "I welcome the broad support at cabinet for our devolution proposals.

"The Chancellor of the Exchequer asked local councils to come forward with ideas to drive economic growth and proposals to transfer funding, functions and responsibilities from national government to local areas.

"This is what we've done and I am looking forward to progressing discussions with the Government on these proposals.

"Telford and Wrekin is very much open for business and a place that is seen locally, regionally and nationally as a place that is on the up. We have a proven track record of bringing new jobs to the area.

"One of our key proposals is to retain a greater share of the business rates we collect here rather than passing them back to the Government.

"There is so much we could do with that money to reinvest it in services and actions that will benefit the businesses and people here in Telford & Wrekin."

The proposal was put together after the Government asked local authorities to outline plane for devolved plans - the most famous example so far has been the creation of a new elected mayor with greater powers for Manchester.

The plans put together by the council, does not mean an enterprise zone, like the one in Wolverhampton that is now home to Jaguar Land Rover, would be created.

But it could allow the area to retain more of the business rates it collects, which could be reinvested in growth in the borough.