Councils won't lose out on business rate shake-up, says minister
Councils in the Midlands have nothing to fear from a major shake-up of business rates, a Treasury minister has told the Shropshire Star.
Financial secretary to the Treasury David Gauke sought to reassure council bosses their 'top up' grants from the national pool of business rates would stay in place, despite the Chancellor bringing in sweeping changes to the way taxes on businesses are run.
Council leaders are concerned it will leave poorer areas worse off if they are under pressure to cut business rates to attract new companies.
But Mr Gauke said: "We will start off with the top-ups and tariffs that we have currently remaining in place.
"If one of the authorities receives a top up, it will continue to do so.
"Everyone starts on a level playing field. If a local authority is successful in attracting businesses to their area and encourages firms to locate there, they will see business rate income increase."
George Osborne is giving councils the power to cut business rates, a move generally welcomed although Telford & Wrekin leader Kuldip Sahota warned of the "devil in the detail".
Elected mayors in places like Manchester and Sheffield will also have the power to increase them.
Mr Gauke said Telford should seize the chance to be part of a West Midlands Combined Authority, which would bring more powers to the region as well as a 'metro mayor'. He said: "We believe directly elected mayors improve the accountability of local government. And with that accountability we can devolve additional powers."
