Business rates snub a ‘real kick in the teeth’

Councillor Peter Nutting said they would need to look at the ramifications of the provisional settlement – which sets out how much government money the authority will receive.

The leader did join Telford & Wrekin Council in expressing his disappointment at the government's decision not to allow the authorities to take part in a pilot where council's can retain 100 per cent of business rates collected locally.

The authorities had joined with Herefordshire Council and Shropshire Fire and Rescue Service to submit the bid.

Sajid Javid, communities secretary, said that Berkshire, Derbyshire, Devon, Gloucestershire, Kent & Medway, Leeds, Lincolnshire, Solent, Suffolk and Surrey, are the councils which will be allowed to retain 100 per cent of business rates raised locally.

Councillor Nutting said: "We’re still busy digesting the provisional local government finance settlement that was announced by Sajid Javid.

"We’re obviously disappointed that our joint bid to become a business rates pilot area was unsuccessful on this occasion, and that there is no additional funding for adult social care or children’s services.

"However, before we say anything further we want to take some time to consider the settlement in detail, and to assess its likely impact on Shropshire Council. We hope to be able to say more shortly after the Christmas break."

Speaking in response to the government announcement Councillor Lee Carter, Telford & Wrekin Council's cabinet member for finance, said the business rates decision was a disappointment following on from the overall local government settlement.

He said: "The Secretary of State has then applied the ultimate kick in the teeth by turning down our bid to be part of a business rates retention pilot scheme which would have helped reduced some pressure on cuts to services."

He added: "We're really in a perilous situation in local government at the moment and services people rely on every day are under real, real pressure."