Business rates revamp under Localism Bill

Communities and Local Government Secretary Eric Pickles said that under the new plans local authorities will be able to “grant discretionary business rate discounts” as well as making small business tax breaks easier to take advantage of. 

He also outlined plans to give “affected businesses a greater say in rate supplements”, meaning local councils outside London must poll businesses to secure majority support before supplements are introduced.  The British Retail Consortium has welcomed the change.

BRC director general Stephen Robertson said: “Compulsory business ballots are a major victory for vulnerable retailers big and small. It would be fundamentally undemocratic to put extra taxes on local businesses without establishing their views first and assessing the potential impact on jobs.”

The changes are designed to “give local government a stronger financial stake in the local economy, helping rebalance the economy, so it is more entrepreneurial and attracts local business”, according to Government.

The Localism Bill also outlines changes to the planning system, which will give communities “the power to grant planning permission if a local majority are in favour”, restoring “democratic and local control over planning”, and replacing the Infrastructure Planning Commission.

The Government is calling it a “landmark bill that heralds a ground-breaking shift in power to councils and communities”.

Pickles said: “It is the centrepiece of what this Government is trying to do to fundamentally shake up the balance of power in this country.  Central government has kept local government on a tight leash, strangling the life out of councils in the belief that bureaucrats know best.

Robertson added: “Giving local decision makers the power to make choices that best suit local circumstances is a sound objective. Successful retailing is all about providing what local customers want.

British Property Federation chief executive Liz Peace said: “We support the broad objectives of the Localism Bill. As one of the most centralised countries in Europe a good dose of localism is needed to redress the balance.”

She added: “It is also crucial that the government presses ahead with plans to allow local authorities to retain business rates generated in their areas so that they are directly rewarded for backing new commercial development.”

Edward Cooke, executive director of the British Council of Shopping Centres, said: “The focus on neighbourhood plans and local decision-making should in principle
encourage communities to attract investment and development that is fit for purpose.

“However, we must acknowledge that it could also facilitate an increase in opposition to new development. Devolving greater powers to local authorities may also result in different rules and procedures around the country, creating inconsistency and uncertainly for the development process.”.