George Osborne: Councils to keep 26bn in business rates
Author: BBC News |
Councils in England will be able to keep the proceeds from business rates raised in their area under plans unveiled by Chancellor George Osborne.
Councils will also be able to cut the rate and some will be able to raise it. Mr Osborne said councils would hold on to 26bn, calling it the “biggest transfer of power” in recent history.
They currently keep up to 50% of the rates – the rest goes to Westminster.
The Local Government Association (LGA) said the move was “good news”.
But Labour warned it could start a “race to the bottom” with councils competing to cut their rates the most.