Partner Article

Local Councils set to receive Business Rates

New government plans are set to let local councils keep business rates, rather than paying them into the Treasury, according to the BBC.

Nick Clegg is set to announce the plans in a speech to the Local Government Association (LGA), in the hope that the plans will help deprived areas which have fewer businesses to generate cash flow.

Currently all businesses on a non-domestic premises, which are then collected and redistributed in the form of a grant, which then goes on to fund local services.

These measures would give councils control over 80% of their budgets, and would allow them to better address priorities in their local areas.

However, some local areas especially in the North worry that the reforms could leave them worse off because they have only a small economy.

Mr Clegg reassured these councils that no authorities will receive less funding under the new measures than they would have done previously.

It is reported that the LGA has responded positively to this news, as it would give the economy the massive boost it needs, while allowing communities to benefit directly from their own economic activity.

Community budgets are also set to be unveiled, which are set to help families with a number of problems, and who require intervention by official bodies. The government believes that these plans will allow councils to better focus on caring for them while eliminating waste.

This was posted in Bdaily's Members' News section by Ruth Mitchell .