Following a set of consultations, the government published the Local Government Finance Bill just before Christmas 2011.
The Bill introduced a rates retention scheme, enabling local authorities to retain a proportion of the business rates generated in their area. The Bill also provided a framework for the localisation of support for council tax in England, which, alongside other council tax measures, gives councils increased financial autonomy and a greater stake in the economic future of their local area, while providing continuation of council tax support for the most vulnerable in society, including pensioners.
Please see the explanatory notes for the Bill, and the Bill itself, below.
London Councils had grave concerns in three key areas of the Bill’s provisions:
- local retention of non-domestic (business rates)
- introduction of tax increment financing (TIF)
- Council tax reduction schemes.
The Bill became law as the Local Government Finance Act 2012 on 1st November 2012.