Released on 19 July 2011
Responding to the publication of the local government resource review consultation, London Councils’ Chair Mayor Jules Pipe said:
“Business rate retention, done right and done fairly, will be good for local councils, good for business and good for London.
“Developing a closer working relationship between local government and local business should help drive forward the capital’s economy to everyone’s benefit.
“But there is an important balance to be struck between rewarding local authorities for growing their business rate base and ensuring that all local authorities have sufficient resources to deliver vital services for residents. We will be closely examining the technical detail to make sure this balance has been achieved in a manner that will allow councils to improve their financial position.
“London Councils officials have been discussing with government a system that tackles this very issue, and our model, Resourcing London is a good starting point from which to address this problem.
“We have made clear to government that the capital’s local authorities are ready to develop a London solution, and we hope that they are able to match our ambition.”
The Proposals for Business Rates Retention consultation was launched on Monday 18 July by CLG. For more information please see the CLG website
London Councils cross-party leadership had written to Secretary of State Eric Pickles ahead of today’s announcement, urging him to allow London to establish its own business rate retention system. For a copy of the letter, please contact London Councils’ press office.