Responding to the Housing, Communities and Local Government
Select Committee report into business rates, Local Government
Association Chairman , said:
“Local government in England is facing an overall funding gap
that will exceed £5 billion by 2020. We are pleased that the
Committee is backing our call for councils to be able to use
extra business rates income to plug this growing gap.
“The money local government has to maintain vital services is
running out fast. Councils will see their core funding from
central government further cut in half over the next two years
and almost phased out completely by the end of the decade. Delays
to when business rate reforms will be implemented mean councils
are facing a financial cliff-edge in two years that the
Government has to address.
“Introducing a fairer funding system and allowing local
government to keep every penny of business rates collected to
plug funding gaps is now the only way the Government can ensure
local authorities are able to protect the services communities
rely on into the next decade and beyond.
“Councils are having to divert money from local services to cover
the risk of backdated business rates appeals. We agree with the
Committee that it is important that the Government provides
assurance to local government that the risk from appeals will be
significantly reduced before further business rates retention is
implemented and the backlog of appeals is eliminated.
“We look forward to continuing our work with the Government on
further business rates retention and the Fair Funding
Review.”
