The purpose of this paper is to seek approval for the London Councils response to the Government’s discussion paper on business rates.
The discussion paper seeks views on the functioning of the business rates system as both a taxation system and a way to fund local services.
The key messages from the draft response include:
• Business rates are an important element of the local government funding system.
• London government should be able to retain a greater share of its business rates income.
• The Government should seek to strengthen the incentive effect within the current business rates retention scheme.
• Local government needs a funding system that is stable, certain and predictable and the Government should be mindful that any changes do not undermine these principles.
• An inclusive approach, that involves local government working with local business, should be at the heart of any future changes to the business rates system.
